Dan Nathan's Snap Options Trade

On CNBC's Options Action, Dan Nathan spoke about a bullish options strategy in Snap Inc SNAP.

He thinks it would be a good idea to use a risk reversal strategy to initiate a long position in the stock. Nathan wants to sell the July 17 put for $0.85 and buy the July 30 call for $0.85.

If the stock trades below $17 at the July expiration, which is around 23 percent lower from the closing price on Friday, Nathan is going to have to buy it at $17. If it trades above $30 or approximately 36 percent higher, he's going to make money on the trade.

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See Also:

It's No Secret: Retail Investors Love Snapchat

The Road Ahead For Snap: What Does It Mean To Be A Camera Company?