Options Trader Betting Big That Snap Stock Will Top This Level By Friday

The bipartisan group of lawmakers is seeking to ban TikTok from the U.S. Shares of social media names, including Pinterest, Inc. PINS and Meta Platforms, Inc. META traded sharply higher, while Snap Inc.SNAP edged lower on Tuesday.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Snap traded at 1.7x average daily call volume.

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There was a buyer of 6,600 of the December 10 calls at an average price of $0.16 per contract, Khouw mentioned.

The trader is betting that Snap's stock will move back above the $10 mark by the end of the week.

Price Action: Shares of Snap dropped 0.5% to $9.41 in the regular trading session on Tuesday, but added 0.9% in after-hours trading. Pinterest and Meta shares jumped 11.9% and 4.7%, respectively, in the session.

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