Snap's Options: A Look at What the Big Money is Thinking

Investors with a lot of money to spend have taken a bearish stance on Snap 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 15 uncommon options trades for Snap.

This isn't normal.

The overall sentiment of these big-money traders is split between 20% bullish and 66%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $1,885,292, and 11 are calls, for a total amount of $1,360,349.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $8.0 to $15.0 for Snap over the recent three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Snap's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Snap's significant trades, within a strike price range of $8.0 to $15.0, over the past month.

Snap Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Snap

Snap is a technology company best known for its marquis social media application Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.

Following our analysis of the options activities associated with Snap, we pivot to a closer look at the company's own performance.

Present Market Standing of Snap

• Trading volume stands at 12,771,754, with SNAP's price down by -3.47%, positioned at $10.86.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 69 days.

Professional Analyst Ratings for Snap

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $13.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Citigroup has decided to maintain their Neutral rating on Snap, which currently sits at a price target of $13. * Maintaining their stance, an analyst from JP Morgan continues to hold a Underweight rating for Snap, targeting a price of $10. * An analyst from B of A Securities has decided to maintain their Neutral rating on Snap, which currently sits at a price target of $14. * An analyst from JMP Securities downgraded its action to Market Outperform with a price target of $16. * Reflecting concerns, an analyst from Wells Fargo lowers its rating to Equal-Weight with a new price target of $11.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Snap options trades with real-time alerts from Benzinga Pro.