Snap Inc (SNAP)

[fromtheuk]

I guess that’s a saddle trade, what you need is volitility, very good chance of that.

Personally I think you will make on the PUTS, but would not be surprised for earnings to be bad, but with positive guidance, and be back to $10. Investors love SNAP, and I would be wary betting against them until the fundamentals tell me it’s game over.

One thing to think about. Why the drop, and why NOW. What changed. To me it’s earnings worries leaking out (keep an eye on insiders). Also if after earnings it’s $7 or under, expect the class actions to kick in. Not saying there is any justification, but the vultures will swoop, as they always do.