Rocket Equities & Options - SNAP Put Credit Spread 10-20-20
We are also selling a SNAP Put Credit Spread
Sell the October 23 SNAP $26 put
Buy the October 23 SNAP $25 put
Collect a credit of at least $0.25. You are risking $75 to make $25 in this trade, exactly 3 to 1. We achieve our max profit if SNAP stays above $26 by Friday's close. SNAP has earnings tonight and the market is pricing in a $3.31 move, which is more than an 11% move. We will look to absorb some of that premium below the market. SNAP is currently trading at $28.78.
Buy the October 23 SNAP $25 put
Collect a credit of at least $0.25. You are risking $75 to make $25 in this trade, exactly 3 to 1. We achieve our max profit if SNAP stays above $26 by Friday's close. SNAP has earnings tonight and the market is pricing in a $3.31 move, which is more than an 11% move. We will look to absorb some of that premium below the market. SNAP is currently trading at $28.78.