Twitter Stock Hits 7-Year High Ahead of Q4 Report

The equity is up over 95% over the last nine months

Assistant Editor
Feb 8, 2021 at 1:48 PM
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The shares of Twitter Inc (NYSE:TWTR) are up 2.2% to trade at $58.05 at last check, and earlier hit a seven-year high of $59.60. This positive price action comes ahead of the company's fourth-quarter earnings report, which is due out after the close tomorrow, Feb. 9. Below, we will take a look at the equity's latest performance on the charts, and explore some of the options activity surrounding TWTR ahead of the event. 

Twitter stock has been rapidly climbing the charts since pulling back to its 120-day moving average in late November, and finally broke above resistance at the $56 mark -- home to its previous highs -- last Thursday. What's more, the equity is on pace to lock in its sixth-consecutive daily win, marking its longest streak since December. Over the last nine months, TWTR boasts an impressive 95.2% lead.

twtr feb 8

Still, options bears are charging toward TWTR at a much faster pace than usual, though calls are still outpacing puts. This is per the equity's 50-day put/call volume ratio of 0.48 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the extremely high 97th percentile of its annual range. 

A look at Twitter stock's post-earnings moves during the past two years shows a mixed bag, with 50% of reactions positive. However, the equity has logged two dips of more than 20% following earnings during this time frame. The equity has averaged a post-earnings swing of 12.9% over the last eight quarters, regardless of direction. This time around, the options market is pricing in a much larger move of 18.7% for Wednesday's trading.

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