Snap Options Traders Pile Into Calls Amid 20% Monthly Rally — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Snap shares are up nearly 20% this month after trading below $10 since July 2025, recovering from a low of $3.81 in April following a collapse from over $80 in 2021
- Options traders pushed Snap trading volume to more than 4x the month-long average on Monday, with about 140,000 options changing hands including ~64,000 likely buyer-initiated calls versus under 7,000 puts
- Call options dominated activity, with 9 of the top 10 trades by volume being calls and $5M of the $5.5M in premium exchanged tied to calls, signaling positive directional bias per Barchart and SpotGamma
- The most popular contract was the $8-strike call expiring Dec. 18, which traded 26,000 times at about 37 cents and requires a 30% rally before expiry—the highest level Snap has traded since February
- Blue Duck Capital issued an open letter last week urging Snap's board to raise dedicated capital for its AR "Specs" glasses, projecting the product could drive shares to $12-$14
- The catalyst cited by traders was excitement surrounding Meta Platforms' AI agent, which has helped revive sentiment across social media stocks
Why it matters: Snap shareholders with 64,000 bullish call bets are pricing in a 30%+ rally by mid-December, which would push the stock above $10 for the first time since July 2025 and to its highest level since February—yet Snap previously collapsed from over $80 to $3.81 across that same range, putting these trades in direct tension with the stock's multi-year trajectory.
Ask SkimNews
