S2NA34 trade ideas
SNAP, going down underIt is extremely weird to short a stock but channel resistance and price at the apex of rising wedge appeals a lot to me.
Two potential routes going forward for next 6 - 12 months, time is the only factor i cannot control
1. More pessimistic route is highlighted in blue showing ultimatum of best long price around 25 -30
2. More optimistic route is highlighted green that even this retracement could see price goes 40 - 50
in no time, news about why SNAP price drops will appear.
Chart always faster than Fundamental news, at least to me
SNAP Wheel Strategy Short PutSnapchat is down 25% from its highs, and while it has bounced up a little bit from the highs, it still remains oversold. Now might be the right time to sell a put into weakness and collect premium.
Trade Idea:
Medium Risk: The 44 Put expiring 4/16 for $1 credit . It has a 81.5% Prob. OTM and if you do get assigned, your cost-basis per share will be $43 and it is a good place to own as you will be in the middle of the volume profile for the last 6 months meaning that you won't be buying at the top but at the same time the bottom.
Aggressive: The 47 Put expiring 4/16 for $1.5 credit . It is right below support and has a higher 75% Prob. OTM. While you have a higher chance of getting assigned with this one, considering the support level that hasn't been breached for months, you still have high odds of collecting the premium and not get assigned. Even if you do get assigned, your cost-basis per share will be $45.5.
For both of these trade ideas, if you believe in Snapchat's fundamentals, which are pretty modest, you can hold on to the stock and sell covered calls (70-80% OTM) and collect premium until you get assigned. Once you do get assigned, you can come back to selling cash-secured puts again.
Long SNAP as NASDAQ recoversStock has declined in lower volume. Great volume on big up days Feb 5 & Feb 24. It shows the sign of just having come down along with all tech.
Mutual fund ownership increased 19% from the previous quarter.
Great EPS an Revenue growth last two quarters.
Long @ 58.79, average of two buys during the day @ 58.43 & 59.16.
Looking at TWTR another strong stock in the same group.
Can SNAP reclaim this channel?$SNAP 2HR.... Watching for price to reclaim uptrend channel and a possible reversal to retest ATH, could see a possible move to 65 and if volume is low we could see a sell off and back to previous lows, possible double bottom at 51.38 under that strong demand near 48.20... if we break that I'm seeing an overall move to my wave c target at 43. Now if we see higher lows begin to form and we reclaim that channel I can see a retest to 73.18 and ATH breakout to 95. Perfect short and long opportunity for short term option traders, liquid option contracts and decent premiums.
Sell the rally, target $48.I think we are not out of the woods yet. We might see a relief rally to $60-62 then will resume the way down. next target could be around $48.
Please note:
- short selling is super risky. ( unlimited loss ), I prefer to buy put options.
- I'm just sharing my view. its not a recommendation for buying or selling.
