Social media giant Snap (SNAP) is a remarkable year, boasting a lead of about 50% since the beginning of 2021. In addition, stock prices are fresh from a record high of $ 83.34, which was touched on September 24th. In the bull gap in mid-August. SNAP has receded from this peak in October, but has found support at the $ 70 level, home to the highs of the pre-Bull gap. Moreover, if the past is a precedent, security has returned to the immediate vicinity of a trendline that could push SNAP even higher.
According to a study by Rocky White, senior quant analyst at Schaeffer, SNAP fell within one standard deviation of the 80-day moving average after a long period of time here. White’s data show eight other signals that have occurred in the last three years, with a 57% chance that SNAP has a high one-month return, with an average pop of 7.6% during that period. From the current $ 75.52 perch, a similar move will bring security just below the September peak of $ 81.26.
The sentiment surrounding SNAP is overwhelmingly bullish. Of the 23 analysts covered, all but four believe they are “buy” or better. In addition, SNAP boasts a 50-day call / put volume ratio of 2.55 on the International Stock Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This is more than 97% of the annual readings. Range means that the option trader is picking up a long call with a faster clip than usual.
Now may be the wise time to join these bulls with options. The securities Schaefer’s Volatility Index (SVI) is 61%, which is higher than the 23% measured in the last 12 months. This means that option traders are currently pricing with relatively low volatility expectations. In addition, the Schaeffer’s Volatility Index (SVI) for equities is ranked 82 out of 100, suggesting that SNAP has exceeded the volatility expectations mentioned above over the past year.