SNAP Short Swing TradeYesterday an alert I set on a pending SNAP triggered signifying what I thought would be the top of the breakout. I took an initial 12/17 50 put entry off of strong bearish divergence when what I thought was wave B hit a resistance and then doubled the position when the Pa fell below the head and should neckline.
Closed position today for $300 profit, but I'm not sure the downward movement is complete. After my piss poor trade management with AMD yesterday though, I'm looking to do better with profit and loss management. So, ill be looking to re-enter later today.
1SNAP trade ideas
SNAP Broadening Formation BreakoutHere we see a right angle broadening formation, with the accumulation line on the bottom.
What appears to be an island reversal pattern appeared in the daily chart, marked by the yellow rectangle, which is typical of congestion patterns like this.
Broadening formations are typical of late stage bull markets and are accompanied by irregular volume throughout.
A majority of broadening formations carry bearish implications, and a breakout occured today in SNAP, although not by the generally "safe" 3% margin.
I would expect a throwback, but the pattern implies a -65% move to the downside to 17.5, although not necessarily soon.
SNAP - opportunity for some nice gainsBack when SNAP reporting earnings and had the miss due to the change in policy by APPLE with limiting how SNAP could market to it's clients i thought it was an extreme over reaction as the price literally fell off a cliff when i went digging into unusual whales i found very large call option bets placed out for end of NOV exp which seemed like they placed those options trades to collect premium only, as it was a multi leg strategy it also had very bullish call options included with some of the premium amount for a total option contracts totaling 1.3 million i tweeted out the chart weeks back stating i felt the price would remain in the colored box until those options expired so they could collect the premium and we would potentially see a jump back in the price action looks like we are closely approaching this coming to fruition, def should be a play to keep in your watch list
Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures video from a human perspective; and advertising products, including AR and Snap ads. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
Below Fair Value: SNAP ($62.97) is trading below our estimate of fair value ($69.26)
Below Fair Value: SNAP is trading below fair value, but not by a significant amount.
REWARDS
Trading at 9.1% below our estimate of its fair value
Earnings are forecast to grow 73.7% per year
Earnings have grown 12.8% per year over the past 5 years
Risk Checks
Fail
Has there been substantial insider selling in the past 3 months?
Significant insider selling over the past 3 months
Fail
Have shareholders been diluted over the past year?
Shareholders have been diluted in the past year
Pass
Are they forecast to achieve profitability?
They are forecast to become profitable over the next 3 years
Pass
Are revenue and earnings forecast to grow?
Earnings are forecast to grow by an average of 73.7% per year for the next 3 years
Pass
Are they in a good financial position?
They have sufficient cash for at least 1 year of operations
Pass
Is their dividend sustainable?
They do not pay a dividend
Pass
Is their share price liquid and stable?
Share price has been stable over the past 3 months
Pass
Do they have sufficient financial data available?
They have sufficient analyst coverage
Pass
Are there any concerning recent events?
No concerning events detected
Pass
Do they have meaningful levels of revenue?
Revenue is meaningful ($3B)
Pass
Do they have a meaningful market capitalization?
Market cap is meaningful ($123B)
Pass
Do they have negative shareholders equity?
SNAP does not have negative shareholders equity.
metaverse stockIf you believe in Zuckerberg's vision of Metaverse which are humans hiding away from reality and sunlight to play a couple of hours in the metaverse or SNAPs spectacles vision of mixed reality.
Personally, I would love to augment my every day with important information all around me, making SNAP's vision more of a reality than FB.
Will Financial conditions spoil this trade for us? you can't ignore 200M daily users, I use more snap than FB...
Metaverse stockIf you believe in the Metaverse then you either believe Zuckerberg's vision of putting on avatar or you believe SNAPs vision of missed reality and augmented reality as the new norm.
SNAP not releasing spectacles until they are ready for consumers is probably the best strategy, the question is will financial condition spoil Metaverse from being priced in or will we end up at 800 before 2026
Long | SNAPNYSE:SNAP
Possible Scenario: LONG
Evidence: Price Action
Entry point: buy order : 53.60$ in case of pull-back, without pullback 54.20$ is buy signal
TP2: 56$
TP2 : 57$
Call options, Strike 56$, 11/05/2021, 100 contracts, cost 5600$, profit in target 1: 8k, in TP2: 13k
*This is my idea and could be wrong 100%
$SNAP gap down after earnings playI think we all saw the news:
Snap reported upbeat earnings for its third quarter, while sales missed expectations.
The company also issued Q4 sales guidance below estimates. This was related to how Apple's data privacy changes make it harder for digital advertising to perform as they have been. we saw Google and FB have dips as well.
Since the $SNAP drop is so extreme there is opportunities to play on the Long and Short side at key levels. I'll be looking to scale into a trade on either side at the support and resistance levels outlined int he chart.
Long : If prices recovery quickly on Monday, I expect a sell off for the rest of the week as investors get a second chance of exiting the trade before anymore bad news.
Short : If we sell off even more on Monday, then I will be buy-buy-buying at each support level marked. I think $SNAP has potential to be a great day and swing trade this week.
Have a great Monday!
mind the gap on SNAPWhat do you think? Is our friend Phil D. Gap coming to town to make up for this nasty SNAP slide? Yet another left for dead disgusting long that might reflect some upside potential. I know everyone's a little bearish and especially given a day like today, tech doesn't look as hot, but are we going down or up here?
Buy SnapIts cheap right now considering it reached $76 before the earnings came out. Apple advertising changes did affect Snap. It affected a lot of social media apps. However, the platform is continuously improving, and attracting new users. They have plenty of room for growth and innovation. In the long term, this stock is a buy.