PINS

New Options Trade: High Upfront Income, Effective Social Media

As many technology companies are facing tough quarterly comps (as the initial pandemic social-distancing bump wears off), the market is misinterpreting (in some cases) the latest batch of earnings results with a short-term lens. And this has created some attractive opportunities in the options market. In this report, we review a high-income-generating options trade on a powerful social media stock that just recently sold-off. The trade not only puts significant upfront premium income in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this extremely attractive company at an even lower price. We believe this is an attractive trade to place today and potentially into early next week, as long as the underlying share price doesn’t move too dramatically before then.