Jim Strugger's Snap Lock-Up Trade

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.