Most Active Options Update: Twitter Inc (TWTR)

Traders are eyeing front-month gains for Twitter Inc


Published on Nov 24, 2014 at 2:38 PM
Updated on Apr 20, 2015 at 5:32 PM

The 20 stocks listed in the table below have attracted the highest total options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Twitter Inc (NYSE:TWTR), where front-month strikes are in focus.

Most Active Options Table

Twitter Inc calls are trading at more than three times the pace of puts so far this afternoon. In fact, all 10 of the stock's most active strikes are on the call side of the fence, led by the December 39 strike, where 6,257 contracts are on the tape.

Based on the fact that 63% of the calls changed hands at the ask price, and there are just 2,222 contracts in open interest at the front-month strike, it's safe to assume bullish bets are being initiated. In other words, the call buyers are banking on TWTR to continue heading north through the close on Friday, Dec. 19, when the December series expires.

Currently, Twitter Inc (NYSE:TWTR) is up 0.2% at $40.10, meaning the calls are already in the money. However, in order for the traders to profit at expiration, the underlying must be perched above breakeven at $41.25 -- or the strike plus the volume-weighted average price of $2.25.

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