Snap Options Traders Betting On Stock Giving Back Gains After Rising Sharply Monday

Snap Inc. SNAP shares rose sharply on Monday amid the U.S. Senate planning to introduce a bill allowing for a ban on foreign technology, which could impact TikTok.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Snap traded at 3x average daily options volume on Monday. There were 2x more calls than puts on the stock.

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There were buyers of 32,204 of the March 10 weekly 11.5-puts at an average price of $0.26 per contract, Khouw mentioned.

Snap is up over 16% in the past five trading sessions, and traders expects the stock to give back up some gains into Friday’s close. 

Price Action: Snap shares jumped 9.5% to close at $11.66 on Monday.

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