Options for Snap Inc.’s stock are implying a big one-day move in the stock, after the Snapchat parent reports second-quarter results after the close, unless of course you compare it with the reaction to the previous quarter’s report. A “straddle” option strategy is currently pricing in a one-day post-earning move of 14%, in either direction, said E-Trade Senior Strategist David Whitmore in an emailed note to MarketWatch. “That’s a $2 swing for a stock currently trading at $13.50–so a lot of action expected,” Whitmore wrote. But the day after first-quarter results, which was the first report since Snap went public on March 2, 2017, the stock plunged 21.5% on May 11 after the company reported a wider-than-expected loss and revenue that didn’t rise as much as projected. Snap’s stock has tumbled 25% since May 11, while the S&P 500 has gained 2.2%.
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