AAL

2 Stocks Under $20 in Focus Amid Market Selloff

Social media giant Snap slashed its current-quarter forecast

Digital Content Manager
Aug 2, 2024 at 11:23 AM
facebook X logo linkedin


Snap Inc (NYSE:SNAP) is down a 23.9% to trade at $9.74 at last check, after the social media company's outlook for the fiscal third quarter came in dramatically short of analysts' expectations. This makes SNAP a contender for Schaeffer's Cheap Seats: Stocks Under $20 segment.

SNAP is on track for its worst single-day percentage drop since February, and hit its lowest level since October earlier. The shares also breached former support at the $10 level, which contained its April pullback. SNAP is down 41.8% for 2024, with the 20-day moving average guiding it lower.

Options traders are targeting SNAP today, with 59,000 calls and 93,000 puts traded so far, which is five times the intraday average volume. The most popular contract the weekly 8/2 10-stirke put, where positions are being opened.

Sleep Number Corp (NASDAQ:SNBR) is also another affordable stock to monitor, last seen down 14% to trade at $12.17, looking at its worst daily drop since November. Today's bear gap comes after the mattress company reported a second-quarter revenue miss on Wednesday and saw a price-target cut from Piper Sandler to $12 . Plus, the equity is contending with broader market headwinds.

SNBR rallied off its July 19, 14-year low of $8.13, but lost steam before reaching the $15 level. While shares are on track to snap their six-day win streak, they are far from erasing gains thanks to yesterday's 19.9% pop, with added support from their 20-day trendline.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.