1 Stock Quietly Hitting New Highs

Dear WallStreetZen Member,

This week, our Smart Leverage Alert centers on LifeStance Health (LFST).

LifeStance Health is one of the largest outpatient mental-health providers in the country — a national network of therapists and psychiatrists delivering in-person and virtual care. After years of scaling, the business has just crossed an important line: it's now profitable, and the market is rewarding the turn.

In its most recent quarter, reported August 6, LifeStance posted adjusted earnings of $0.06 per share, ahead of the $0.03 estimate, as revenue reached roughly $1.58 billion. More telling is the trajectory: both revenue and earnings are forecast to grow significantly faster than the broader Medical Care Facilities industry.

This isn't a cheap stock, and we're not pretending it is. It trades at a premium because it's growing into a large, underserved market — and the price action agrees, with shares up more than 120% over the past year and pressing new highs. Wall Street is lined up behind it too: of the six analysts covering LFST, the consensus is a Strong Buy recommendation, with none rating it a sell.

Our Zen Ratings model confirms the strength. LFST earns an A rating, which amounts to a Strong Buy recommendation, landing in the top 4% of more than 4,600 stocks. It's the #3-ranked stock in the A-rated Medical Care Facilities industry.

Looking at the Component Grades that shape the overall grade, LFST ranks in the top 14% for Momentum, the top 2% for Sentiment, and the top 1% for Growth — a fast-growing business with real institutional conviction behind it.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: LFST Long Call

Given the strong fundamental case and the momentum building behind LifeStance, here's how we're structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one.

Instead of committing about $5,040 to own 400 shares outright, four Deep-In-The-Money Calls let you control those same shares for about $1,352.

• The Play: $10 Strike Call (Expiring Mar 19, 2027), 4 contracts
• Delta: 0.8333 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~82% — More than four-fifths of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 2.14x — Every dollar moves 2.1x harder than the stock, while the deep ITM strike still keeps meaningful downside protection versus a naked speculative call.
• The Target: For this position to double (+100%), LFST only needs to reach approximately $16.76 — a roughly 29% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A 29% move in LFST stock would be a solid return for shareholders. In these Deep-In-The-Money options, that same move has the potential to double your investment while putting only about $1,352 at risk instead of $5,040.

That's the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

LFST is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.