Dear Reader, Snap released earnings for the most recent quarter and the stock broke out to new highs [afdaf3fd61bec5de782f6956499cf967c4d37d87][5ba6df09f6dbcb9ba8424d0bb0adfdd894b90fc3]
An Earnings Beat Sets Up a Trading Opportunity
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[Options Profits Daily]
Snap an Opportunity for a Potential Gain of 167%
Snap released earnings for the most recent quarter and the [stock broke out to new highs.](
The social media company unexpectedly reported an adjusted profit of 1 cent per share, topping Wall Street's estimate of an adjusted loss of 5 cents.
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Snap reported daily active users of 249 million, up 18% from the year-ago period, exceeding its projections in the range of 242 million to 244 million as well as analysts' estimates of 243 million. Net losses fell approximately 12%, from last year's $227 million to $200 million.
Earnings is not the only good news for this stock. Analyst Michael Morris, who maintains a buy rating on the stock, raised the target on Snap to $52 from $36. As we [explain in our latest article,]( there are strategies that can benefit from news while considering risks of a reversal.
In the article, we explain in detail, one such [options strategy.]( This strategy is one that is focused on risk and is able to limit the risk to a precise level in dollar terms. In this trade, which we explain in detail, the risk is limited to $137 based on recent market prices.
Despite that focus on minimizing the potential risk of the trade, the strategy is still capable of delivering large-short term returns. We show how to find the exact amount of risk in dollar terms and we also detail the potential gains of the trade which is about 16%4, based on actual recent market data.
You can find all of the details of the strategy and the specific trade in our latest free educational article that is [available right here..](
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