SNAP Sinks
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Snap Inc. (NYSE:SNAP) Option Puts
Provides 108% Potential Profit
- More To Come! -

by Ian Harvey

November 09, 2017

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Snap Inc. (NYSE:SNAP)

Here is an overview of Snap Inc. (NYSE:SNAP) winning options put trade after reporting earnings. This options trade was recommended, to “Cut-To-The-Chase” Members of Stock Options Made Easy, on Tuesday, November 07, 2017 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, November 06, 2017”; producing great potential profits of 108% within a few hours of executing the trade!

The Recommendation……

…….from “Cut-to-the-Chase” Recommendations - Week Beginning Monday, November 06, 2017.

The Details……..

Snap Inc. (NYSE:SNAP), formerly Snapchat, Inc., a camera company, is confirmed to report earnings today, Tuesday, November 7, 2017, after the market closes. For Snap's third quarter, the consensus estimate is for revenue of $236 million, up 84% from the year-ago period but the fifth quarter in a row of deceleration. The consensus estimate on adjusted earnings, as polled by Zacks Investment Research, is a loss of 14 cents, compared with an 11-cent loss in the year-ago period.

Snap's second-quarter report on Aug. 10 fell short of estimates on just about every metric, damaged by the Instagram platform owned by Facebook (FB). Both Snap, with its Snapchat app, and Facebook's Instagram provide a mobile communications platform used for sharing photos and videos, with social networking features.

Investor sentiment going into the company's earnings release has 20% expecting an earnings beat. Short interest has increased by 69.5% since the company's last earnings release while the stock has drifted higher by 27.3% from its open following the earnings release. Overall earnings estimates have been revised lower since the company's last earnings release.

It's a problematic sign that analyst moves ahead of Tuesday afternoon's big report have been lukewarm at best……..continue reading……

The Trade……..

** OPTION TRADE: Buy the SNAP DEC 15 2017 14.000 PUT at approximately $1.05.

The Report………

Snap Inc. said its quarterly loss more than tripled, disappointing Wall Street again as it failed to significantly grow the number of people using its app daily or the amount of money advertisers are spending to reach those users.

For its third straight quarterly earnings report as a publicly traded company, it failed to live up to Wall Street’s forecasts for revenue. Snap, the parent company of the messaging app Snapchat, said revenue in the third quarter rose 62% to $207.9 million.

"In the first two quarters as a public company, we framed SNAP's disappointing results as 'growing pains' but felt the long-term debates around user growth and ad business scaling were left unsolved," UBS analyst Eric Sheridan wrote in a note to clients Wednesday entitled "SNAP Crackle Flop."

"It is now very likely that SNAP will continue to struggle on multiple fronts in the coming 12 months."

End Result……..

The company's shares were down more than 15 percent midmorning Wednesday. The stock prices whipsawed higher and lower in premarket trading after it was revealed that the Chinese internet giant Tencent has taken a 10 percent stake in the company, according to a regulatory filing.

At the time of the recommendation, Tuesday morning, SNAP stock price was sitting at $14.82.

Snap’s shares tumbled as much as 20 percent in after-hours trading, before paring losses to close Wednesday trading at $12.91; down -$2.21, or -14.62%.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 108% within a few hours.

ACTION TO TAKE…….

As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

What To Do Now…….

If you interested in being part of this profitable action just click here……


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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