Investors with a lot of money to spend have taken a bullish stance on Snap (NYSE:SNAP).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with SNAP, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 11 uncommon options trades for Snap.
This isn't normal.
The overall sentiment of these big-money traders is split between 54% bullish and 36%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $301,781, and 6 are calls, for a total amount of $199,185.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $6.5 to $19.0 for Snap over the recent three months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Snap's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Snap's whale trades within a strike price range from $6.5 to $19.0 in the last 30 days.
Snap Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SNAP | PUT | SWEEP | BULLISH | 10/18/24 | $4.05 | $4.0 | $4.0 | $19.00 | $99.6K | 455 | 548 |
| SNAP | PUT | SWEEP | BULLISH | 08/16/24 | $3.75 | $3.7 | $3.7 | $19.00 | $77.7K | 386 | 223 |
| SNAP | PUT | TRADE | BEARISH | 08/16/24 | $2.36 | $2.35 | $2.36 | $17.00 | $52.6K | 6.8K | 2 |
| SNAP | CALL | SWEEP | BEARISH | 05/24/24 | $0.24 | $0.22 | $0.22 | $16.50 | $42.3K | 26.7K | 6.5K |
| SNAP | PUT | SWEEP | BULLISH | 09/20/24 | $3.95 | $3.85 | $3.85 | $19.00 | $38.8K | 310 | 102 |
About Snap
Snap owns one of the most popular social networking apps, Snapchat, claiming more than 400 million daily active users as of the end of 2023. Snap generates nearly all its revenue from advertising. While only about one quarter of users are in North America, the region accounts for about 65% of sales.
Following our analysis of the options activities associated with Snap, we pivot to a closer look at the company's own performance.
Snap's Current Market Status
- With a volume of 7,964,490, the price of SNAP is down -1.7% at $16.15.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 63 days.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.