Jim Strugger of MKM Holdings spoke on Bloomberg Markets about Snap Inc SNAP.
He said that around 85 percent of the IPO shares are going to hit their lock-up expiration on July 31 and on August 31. He thinks that the stock could trade lower because of that and he suggested that investors with a long stock position in the name should sell the August 19 call and buy the August 15 put for 60 cents.
Strugger explained that this options structure is a collar and by committing to sell the stock at $19, investors are protecting their downside.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.