Snap Option Alert: Jan 5 $17 Calls Sweep (16) near the Ask: 1574 @ $0.38 vs 681 OI; Earnings 1/30 After Close [est] Ref=$15.935
Portfolio Pulse from Charles Gross
There has been a significant options trade on Snap Inc. with a sweep of 1574 contracts for the January 5th $17 call options near the ask price of $0.38, compared to an open interest of 681 contracts. This activity suggests that traders may be anticipating a positive move in Snap's stock price ahead of its earnings report, which is estimated to be released after the market close on January 30th. The reference stock price at the time of the trade was $15.935.
December 12, 2023 | 3:57 pm
News sentiment analysis
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The large volume of call options for SNAP indicates a bullish sentiment among traders, expecting the stock to rise above $17 by January 5th. This could be in anticipation of a positive earnings report due on January 30th.
The purchase of a large number of call options usually indicates that investors are expecting the underlying stock to increase in value. Given that these options are for a strike price above the current stock price and are set to expire shortly after the earnings announcement, it suggests that traders are speculating on a positive earnings outcome that will boost the stock price. However, options trading is speculative and does not always correlate directly with stock movement.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80