SNAP Earnings
SNAP stock is slightly bullish
SNAP reports earnings after market close today. The stock price is somewhat bullish and is up +5.5% over 1 month. Over 3 months the stock is up +21.37% and YTD it is up +51.09%. So, it has consistently delivered returns.
The Options AI website projects a post earnings move of ~8.5% in either direction. That would give a range of SNAP stock price by close tomorrow of $69 to $82. The stock price average move has been ~13.5% and the last 3 moves have all been up:
Feb 4 - 5, 2021: +9.14%
Apr 22 - 23, 2021: +7.45%
Jul 22 - 23, 2021: +23.82%
So the moves in the last have really been big. As a result of which the implied volatility in the options market is very high.
I think SNAP will be difficult to trade earnings as I will have to go out at least 25% out of the money and premiums may be very low. So, after this analysis, I am going to pass on trading SNAP for earnings.