$SNAP Options Intelligence

🎯 BUY SNAP DEC 19 8 CALL

I recommend buying the SNAP December 19, 2025, 8 strike call option because there is a strong bullish call option sweep today with 2,000 contracts traded at this strike, indicating significant bullish sentiment from informed market participants[1]. The term structure shows that the December 19 options have a clean IV of about 50.4%, which is slightly below the baseline 90-day historical volatility of 50.1%, suggesting these calls are fairly priced or slightly underpriced relative to historical norms, providing a good entry point for a directional bullish trade.

Buy SNAP Dec 19 8 Call
Stock Price: $7.74 | Entry: Use ask price near $0.00 (exact bid/ask not provided, but volume and OI indicate liquidity)

📊 Trade Metrics

• Risk: Premium paid (exact price to be confirmed by bid/ask)
• Reward: Unlimited upside if SNAP rallies above $8 before expiration
• Breakeven: Strike + Premium paid (approximately $8 + premium)
• Max Loss: Premium paid if SNAP stays below $8 at expiry
• Days to Expiration: 14 days

📈 Term Structure & Volatility Analysis

• Baseline 90-day Volatility: 50.1%
• December 19 Clean IV: 50.4% (near baseline, slight buy signal)
• IV Rank: 100% (high overall, but near-term options are fairly priced)
• Earnings Multiplier: 2.38x (moderate expected move for earnings on 2026-02-03, so no earnings risk before expiration)
• Calendar Opportunity: Yes, as December 19 IV is lower than longer-dated expirations, favoring buying near-term calls for momentum plays

📈 Greeks & Volatility

• Delta: Around 0.394 (moderate upside exposure)
• Theta: -0.011 (time decay is moderate given short duration)
• Vega: Positive exposure to volatility increase
• Current IV: Elevated but reasonable for December 19 expiry

🎯 Why This Trade

The term structure and volume data reveal a strong bullish sweep of 2,000 contracts at the $8 strike call expiring December 19, signaling institutional buying interest[1]. SNAP is trading just below $8 ($7.74), close enough to the strike to benefit from a modest rally. The stock’s technicals show neutral RSI (~46) and price slightly below the 20-day and 50-day moving averages, suggesting room for upside if positive momentum builds. The high IV rank (100%) favors premium sellers generally, but here the near-term call sweep and slight underpricing of December 19 options present a good tactical buy for a short-term bullish move without earnings risk, as next earnings are in February 2026. The expected daily move is about ±$0.34, so a move above $8 within two weeks is plausible.

📊 Pro Analysis

• Current IV is elevated (70.4%) but December 19 options are near baseline volatility, making them relatively attractive for buyers
• Put/Call Volume Ratio is 0.43, indicating heavy call buying and bullish sentiment
• Market Maker Max Pain at $8, aligning with the strike of this call sweep, suggesting strong support/resistance level around $8
• Fundamentals show negative EPS (-$0.29) and profit margin (-8.6%), so the trade is more technical/momentum-driven than fundamental

🔍 Earnings Date Check

• Earnings on 2026-02-03
• December 19 expiration is well before earnings, so this trade avoids earnings volatility risk

💡 Trade Management

• Entry: Use ask price near $0.00 or current market ask for Dec 19 8 call
• Target: 50-100% profit if SNAP rallies above $8.50-$9.00
• Stop: Exit if SNAP falls below $7.50 or if option premium drops >50%
• Time Stop: Close position 1-2 days before expiration to avoid time decay acceleration

🔒 Pricing Validation

• Stock Price: $7.74 (below $8 strike, call is slightly out-of-the-money)
• Intrinsic Value: $0 (OTM call)
• Call price should be above intrinsic, consistent with market data and volume

🔍 Market Overview

The communication services sector is seeing bullish call sweeps in SNAP, reflecting optimism despite the stock being down 24% YTD and trading near historical lows[3][5]. Technical indicators are neutral, with price below the 20-day MA ($8.04) and 200-day MA ($8.37), but the strong call sweep and max pain at $8 support a short-term bullish view. The broader market is in a high IV regime (IV Rank 100%), typically favoring premium selling, but the near-term December 19 options are fairly priced relative to baseline volatility, creating a tactical buying opportunity. No major news today explains the slight price drop (-0.32%), so this trade capitalizes on technical momentum and institutional flow.

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Confidence Level: Moderate-High
This trade is supported by strong institutional buying signals (2,000 contract sweep), favorable term structure (near-term IV near baseline), and technical proximity to the $8 strike. It avoids earnings risk and fits a short-term bullish momentum play.

Risk Assessment:
Premium paid is at risk if SNAP fails to rally above $8 by expiration. Time decay is moderate due to short duration. The trade is directional and depends on a near-term positive catalyst or technical bounce. Given fundamentals remain weak, this is a tactical, not fundamental, trade. Manage risk with stops and position sizing accordingly.