Snap options activity signals bullish bet on share rebound

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Snap options signal bullish rebound

Highlights

Snap options volume surged to nearly 140,000 contracts on Monday, over four times the month-long average, with call buying dominating activity.
Approximately $5 million of the $5.5 million total premium exchanged was concentrated in calls, notably 26,000 contracts on the $8 December 18 strike requiring a 30% share rally.
Despite a 20% gain this month and AI-driven sector enthusiasm, Snap’s shares remain under $10, with activist Blue Duck Capital urging capital infusions for AR Specs to reach $12–$14.

Heavy call buying drives trading surge

As reported by CNBC, options traders poured into bullish contracts on Snap on Monday, pushing total volume to nearly 140,000 contracts, more than four times the month-long average, according to Cboe LiveVol data.

About 64,000 of those trades were calls likely initiated by buyers, versus fewer than 7,000 puts. Traders also sold more than 12,000 puts and just over 34,000 calls, while Barchart data indicated positive net trade sentiment and a bullish directional bias based on options deltas.

SpotGamma data showed that nine of the 10 biggest trades by volume were calls. Of the $5.5 million in premium exchanged, roughly $5 million was tied to call options.

The most actively bought contract was the $8 strike call expiring Dec. 18, which traded 26,000 times. Priced at about 37 cents, the contract requires Snap shares to rise about 30% before expiry to become profitable, which would put the stock at its highest level since February.

Share rebound remains tied to broader sentiment

Snap has gained almost 20% this month, but the stock remains far below its 2021 peak above $80. Shares have traded under $10 since July 2025 and fell as low as $3.81 in April before the latest rebound.

The move comes as enthusiasm around Meta Platforms' AI agent fuels renewed interest in social media stocks. That broader momentum appears to be helping Snap attract speculative trading even as the company is still working to rebuild investor confidence.

Snap, the owner of Snapchat, also sells augmented-reality Specs glasses. Last week, shareholder Blue Duck Capital urged the board in an open letter to raise dedicated capital for the product, arguing that stronger support for Specs could help lift the share price to between $12 and $14.

Meta’s expanding AI push around its Muse assistant was the focus of our earlier article, which outlined how early user traction and growing partnerships could open new consumer and enterprise revenue streams. We also noted that the investment case hinges on whether Meta can translate massive AI infrastructure spending into durable returns—an AI-driven momentum that can shape risk appetite across the social-media sector more broadly.

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