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2 Social Media Stocks With Cheap Options

Weekly calls are popular for SNAP and TWTR

Managing Editor
Feb 13, 2020 at 11:50 AM
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The 20 stocks listed in the table below have attracted the highest weekly options volume during the past 10 trading days, with data courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. The stocks highlighted in yellow are new to the list. Below, we're going to take a closer look at social media stalwarts Twitter Inc (NYSE:TWTR) and Snap Inc (NYSE:SNAP)

MAO Feb 13

TWTR has seen 383,201 weekly call options traded during the past 10 days, compared to 174,406 puts. Most active today is the weekly 2/14 37-strike call, with the 36.50-strike call from the same series also popular. Taking a step back, the March 40 call is home to the top front-month open interest position. Thanks to a big revenue beat earlier this month, Twitter stock is up 14.2% already in 2020, and has added 28% since its Nov. 7 bottom at $28.63. At last check, TWTR is up 0.8% at $37.09.

Moving on to Snap stock, the security has seen 443,151 weekly call options and just 203,055 put options trading within the past two weeks. The weekly 2/14 17.50-strike call is seeing the most action so far today, but the 17.50-strike put in the same series is garnering some attention as well. While SNAP is up 6.8% in 2020, it's been nursing a 5% loss so far in February, and remain a ways off its Jan. 24 two-year high of $19.75. Snap stock is up 1.5% at $17.66 at last glance.

In addition to the heightened options activity, both these social media stocks both sport attractively priced premium at the moment. TWTR and SNAP's Schaeffer's Volatility Indexes (SVI) of 30% and 38% respectively both sit in the bottom 10th percentile of readings from the past year.

 

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