Check Out These Top Trades for Tomorrow! MU, BABA, M >>> READ MORE

Trade of the Day: Snap Inc (SNAP)

I remain cautiously bullish in a still-strong market

By Ken Trester, Editor, Maximum Options

http://bit.ly/2EWrJL0

To receive further updates on this Snap Inc (NYSE:SNAP) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today

My indicators are giving neutral to slightly bullish readings this week, which is about where they’ve been for the past few weeks. We are presently in the longest-ever period of time in which the S&P 500 has not seen a correction of at least 3%.

The “FANG” stocks — Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOGL) — have been the leaders of the current rally, as they have moved up roughly twice as much as some of the other Nasdaq stocks. In fact, there are so few bears right now that S&P put options have almost never been cheaper.

One reason for that is that the S&P 500 Volatility Index is so low, although it has shown some strength this week. Tuesday’s one-day reversal would usually have been a negative for the market, but the fact that the S&P closed higher the very next day goes to show just how strong the current market is.

While I do still recommend having some portfolio insurance on hand, as the rally will end eventually, I remain in the bullish camp and do not plan to fight the tape. Today I’m recommending a bullish trade on Snap Inc (NYSE:SNAP).

Buy to open the SNAP Mar 15 Calls (SNAP180316C00015000) at $0.95 or lower.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading.

Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/trade-day-snap-inc-snap/.

©2018 InvestorPlace Media, LLC