Snap Stock Snatched Up by Options Bulls

The company just rolled out an in-app voter registration feature

Lillian Currens
Aug 7, 2020 at 3:01 PM
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Social media stalwart Snap Inc (NYSE:SNAP) is up 1.8% at $21.75 this afternoon. The company just unveiled its new in-app voting registration feature last night, which it rolled out in an effort to target young voters. It should also be noted that Tencent (TME) -- one of the Chinese companies contending with potentially banned apps in the U.S. -- owns a 12% stake in SNAP, which could also be drawing attention to the stock today. 

The stock -- up 33.6% in the last year, with solid support at its 70-day moving average -- is seeing a surge in bullish activity in its options pits today. So far, 227,000 calls have crossed the tape -- double what's typically seen at this point. The most popular is the August 22.50 call, where positions are being bought to open. The September 26 call is also seeing some action, with positions being opened here as well.

SNAP August 7

Calls have been popular lately. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 4.10 calls have been picked up for every put during the last 10 days. This ratio sits higher than 65% of readings from the past year, suggesting a slightly healthier-than-usual interest in these bullish bets of late. 

For those that want to speculate on SNAP's next move, options could be the way to go. SNAP's Scaheffer's Volatility Index (SVI) of 51% falls into the 15th percentile of its annual range, suggesting near-term options players are pricing in relatively low volatility expectations at the moment. Plus, the stock's Schaeffer's Volatility Scorecard (SVS) sits at 93, indicating Snap stock has tended to exceed options traders' volatility expectations during the past year. 


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