Trade of the Week: SNAP

Options, Quarterly Results, Social Media, Technology Stocks
by Jay Soloff
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Last week was a tough one for social media company Snap (SNAP), which missed badly on guidance. The company warned of challenging macroeconomic conditions ahead and the stock dropped over 40% the next day. The following day, the stock gained 10%, and a large investor bought 10,000 January SNAP calls. This seemingly very bullish trade could suggest a rebound in the coming months.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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