What’s Next For Twitter After Musk’s Buyout Offer

Buyout, Unusual Options
by Jay Soloff
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There’s never a shortage of drama when it comes to Elon Musk. The Tesla (TSLA) CEO recently announced an offer to buy Twitter (TWTR) for $54.20 a share (with the stock trading around $46 at the time).  The social media site is extremely popular but has struggled to live up to financial expectations.  On the day of Musk’s announcement, TWTR options traded 10x their average volume, with the largest trade of the day a seemingly very bullish 10,000-lot call purchase that expires in October.

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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