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Option Clips: Twitter Inc, MGM Resorts, and Cirrus Logic, Inc.

Reviewing notable options activity on Twitter Inc, MGM Resorts International, and Cirrus Logic, Inc.

by 4/29/2014 1:32 PM
Stocks quoted in this article:

Two equities generating buzz on StockTwits today are microblogging pioneer Twitter Inc (NYSE:TWTR) and casino operator MGM Resorts International (NYSE:MGM). Meanwhile, integrated circuit specialist Cirrus Logic, Inc. (NASDAQ:CRUS) is also popular in the options pits. Here's a look at how traders have been aligning their speculative bets today.

  • Twitter Inc (NYSE:TWTR) is attracting attention ahead of tonight's first-quarter earnings report, with the stock rising 3.7% to trade at $42.23. Option volume on TWTR is roughly doubling the stock's daily average, with about 64,000 calls and 47,000 puts changing hands. Despite today's pre-earnings pop in Twitter Inc shares, speculators today are taking a skeptical approach. Options players appear to be selling to open the May 50 call, while bolder bears are buying to open the weekly 5/2 32-strike put.

  • Weekly options are flying across the tape on MGM Resorts International (NYSE:MGM), as the stock surges 7.8% to linger at $24.81 following this morning's well-received first-quarter results. With overall option volume of approximately 51,000 contracts more than doubling MGM's expected intraday action of 19,000 contracts, the top three options at midday are all set to expire after the closing bell sounds this Friday, May 2. Not all of the action consists of new speculation on MGM Resorts International, though -- some traders are selling to close their weekly 5/2 25-strike calls.

  • Finally, option volume has spiked to more than five times the intraday norm for Cirrus Logic, Inc. (NASDAQ:CRUS), with traders responding to the equity's M&A-related pop of 7.9% to trade at $23.75. Once again, very short-term bets are in demand, with the stock's weekly 5/2 23-strike put and call dominating the list of most active strikes. Most of the contracts traded at these two diametrically opposed strikes have changed hands at the ask price, implied volatility is up on both options, and volume is outstripping open interest at each strike -- suggesting today's speculators think Cirrus Logic, Inc. is poised to make more drastic moves by the end of this week.

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