Maximize Returns with Strategic Snowflake (SNOW) Option Trade: A Comprehensive Guide for Financial Success
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- Snowflake (SNOW) stock has recently caught attention as it failed at the declining 50-day moving average.
- The IBD Stock Checkup ranks Snowflake stock as No. 52 in its industry group, with a Composite Rating of 49, an EPS Rating of 81 and a Relative Strength Rating of 19.
- Given this setup, a bearish diagonal put spread is being considered for Snowflake stock.
This article discusses the potential for a bearish option trade on Snowflake (SNOW) stock, providing insights into the strategy and risk management involved.
Considering a Bearish Diagonal Put Spread
For Snowflake stock, the plan is to buy a Sept. 20, 180 put for around $30.50 and sell a June 21, 150 put for around $7.60. The total cost of the trade is the net premium paid, estimated to be around $22.90 or $2,290 for a standard contract of 100 shares.
