What I think about SnapChat.
Snap has a real tough road ahead if it wants to compete with Facebook… AND? Every advertising platform (which is exactly what Snap provides) faces a hard time versus Facebook, even Google. The point here is that SNAP can still be profitable despite the other two (FB and GOOG) taking over 60% of the market.
To be clear, Snap will never be as big as Facebook. So what?! Even building its market value from $15 to $50 billion would be impressive. If you believe it’s possible, then here’s a couple of trade ideas for this weeks earnings.
The trade idea from my newsletter…
SELL September 15 PUT @ 13.00, premium $1.35 (10.4%)
(or if you are really long-term on the company)
SELL January 19 PUT @ 13.00, premium $2.17 (16.7%)
If numbers are good, the stock could explode higher, leaving you with just 10% or 16% instead of much bigger ROI.