SNAP Stock Pops on C-Suite Shake Up

Snap calls have been a hot commodity long term

Managing Editor
May 21, 2019 at 10:06 AM
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Shares of Snap Inc (NYSE:SNAP) are up 2.4% at $11.46 this morning, after the company announced Derek Andersen as its new Chief Financial Officer (CFO). Anderson is replacing interim CFO Lara Sweet, and is leaving his current position as Snap's vice president of finance.

Despite the rise for the shares, the Snapchat parent remains stuck between $10 and $12, which has contained it since its mid-March bull gap. SNAP is also in a deficit of more than 4% for May, and remains far from last year's mid-June peak.

Long term, SNAP calls have been flying off the shelves, with the stock's 50-day call/put volume ratio of 2.36, ranking in the 93rd annual percentile at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). In other terms, this suggests calls have been purchased over puts at a faster-than-usual clip during the past 10 weeks.

Lastly, during the most recent reporting period, short interest on SNAP rose 15%, and now accounts for 10.8% of the stock's total available float. At the security's average pace of trading, it would take shorts under three days to buy back their bearish bets.

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