Social media giant Snap (SNAP) has had a remarkable year, with a lead of around 50% since the start of 2021. Plus, the stock just hit a record $ 83.34, which it said. reached September 24, thanks in part to a bullish spread in mid-August. SNAP pulled out of that high in October, but found support at the $ 70 level, which houses its pre-bull spread highs. Additionally, security has just returned to a striking distance from a trendline that could push SNAP even higher, if the past sets a precedent.
According to a study by Rocky White, senior quantitative analyst at Schaeffer, SNAP has just come close to one standard deviation of its 80-day moving average after a long time above. White’s data shows eight more signals that have emerged over the past three years, with SNAP enjoying higher month-to-month returns 57% of the time, and averaging 7.6% over that period. From its current level at $ 75.52, a similar move would place the stock just below its September high of $ 81.26.
Sentiment around SNAP is extremely bullish. Of the 23 analysts covered, all but four consider it a “buy” or better. Additionally, SNAP has a 50-day call-to-sales ratio of 2.55 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which represents over 97% of reads in its annual report. range, which implies that options traders are taking long calls at a faster rate than usual.
It might be a safe time to join these bulls with options. The stock’s 61% Schaeffer Volatility Index (SVI) sits above just 23% of the last 12-month readings. This means that options traders have factored in relatively low volatility expectations for now. Additionally, the stock’s Schaeffer Volatility Index (SVI) ranks at 82 out of a possible 100, suggesting that SNAP has exceeded volatility expectations over the past year.