Read This Before Snap Reports Quarterly Results

The shares could bounce on Friday, if history is an indicator

Deputy Editor
Oct 18, 2022 at 2:58 PM
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Snap Inc (NYSE:SNAP) is set to report third-quarter earnings and revenue results after the market's close on Thursday, Oct. 20. Shares of the social media company have a positive history of post-earnings reactions, finishing six of eight next-day sessions higher in the past two years, including a massive 58.8% jump in February. This time around, options traders are pricing in a 24.6% swing for SNAP, which is nearly in line with the 24.3% move it averaged following its last eight reports, regardless of direction. 

Last seen 1% higher to trade at $10.68, Snap stock's 80-day moving average continues to cap breakouts from recent consolidation under the $12 level. On a closing basis, the $9.50 area has stepped up as a floor, though SNAP still sits 86% lower in the last 12 months.

SNAP Chart October 182022

Short-term options traders are optimistic at the moment, per SNAP's Schaeffer's put/call open interest ratio (SOIR) of 0.74. This ratio ranks higher than just 22% of annual reading, indicating these traders have favored calls recently.

And options look like a good route to go, as the security tends to outperform options' traders volatility expectations. This is per SNAP's Schaeffer's Volatility Scorecard (SVS) tally of 91 out of a possible 100.


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