Snap Inc. Options Update: Attractive Put Contract Emerges

New opportunities arise for SNAP investors with the February 14th options expiration.

Today, Snap Inc (Symbol: SNAP) investors can now explore new options with an expiration date of February 14th. Utilizing our YieldBoost formula, we have analyzed the SNAP options chain and found a noteworthy put contract.

The highlighted put contract has a strike price of $9.00 and commands a current bid of 14 cents. Investors looking to sell-to-open this put contract will be agreeing to purchase the stock at $9.00. The premium received can lower the effective cost of acquiring shares to $8.86, before any broker commissions. This alternative could be appealing for those intending to buy SNAP, given the current share price of $11.13.

At the $9.00 strike, there is about a 19% discount from SNAP’s current trading price, which indicates that the contract is considered out-of-the-money by that percentage. Furthermore, analysis suggests there is an 82% chance the put contract might expire worthless. We will continue to monitor these odds over time and provide updated statistics on our website in the contract detail section. Should it expire worthless, the premium would yield a 1.56% return on the cash commitment, translating to an impressive annualized return of 13.20%, a figure we refer to as the YieldBoost.

Below is a chart illustrating Snap Inc’s trading history over the past twelve months, with the $9.00 strike price highlighted in green:

In the example above, the implied volatility for the put contract is recorded at 77%. In comparison, we have calculated the actual trailing twelve-month volatility — based on the last 251 trading day closing values and the current price of $11.13 — to be 74%. For additional options contract ideas, please visit StockOptionsChannel.com.

Top YieldBoost Puts of the S&P 500 »

Also see:

• Funds Holding NITO
• UDF Videos
• NGC market cap history

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.