Trade of the Week: TWTR

Dividend Investing, Options, Trade of the Week, Unusual Options
by Jay Soloff
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Social media giant Twitter (TWTR) got a massive boost to the share price recently when the news came out that Elon Musk took a 9% stake in the company.  He has since been named to the company’s board.  Musk has a huge cult-like following, so many investors assume it will be bullish for the stock.  On a very active day for TWTR options last week, nearly 6x the normal amount of options contracts traded, with a seemingly bullish slant.  One trade appears to be a large purchase of calls that don’t expire until 2024.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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