I just bought 2000 shares of Snap (SNAP). Looking to sell a Call.
This morning before the open Evercore upgraded SNAP to an “outperform” from “in-line.” They also raised their price target to $20. The brokerage did an upgrade and raised it’s price target because of Snap’s entry into the gaming industry.
Also if you go to Main Street beats Wall Street’s page “Today’s Most Active Options” and hit the link you will see the lopsided buying of Calls compared to Puts. This shows there’s a lot of interest in Snap with option traders.
I bought 2000 shares of the stock at $16 per share.
Buy 2000 Shares SNAP @ $16.00
This is not the time I’m trying to own more stock but I see a nice opportunity to sell an option with this stock with low risk. I plan on selling a Call today or tomorrow. I’m looking for a 35¢ premium on a 4 day option. I’ll probably have to sell the Call with a $16 Strike Price and only make money with the premium but thats OK. If I get the 35¢ on a 20 contract Call the premium will be $700. Let’s watch and see what happens.
If I get this Call sold the Rate of Return will be 2.1%.
I’m also watching Twitter very closely. It’s in a Wedge Pattern and I feel it will be dropping. I’m watching closely for confirmation of my analysis.
Steve
The Options Coach