Twitter Inc (TWTR) Calls Hot as Buyout Buzz Builds

Twitter Inc (NYSE:TWTR) call volume is soaring, as buyout rumors continue to swirl

Jun 14, 2016 at 2:38 PM
facebook X logo linkedin

Shares of Twitter Inc (NYSE:TWTR) are flying higher yet again, as speculation continues to swirl that the social media firm could be the next takeover target -- with some floating around the possibility of a bid from Alphabet Inc (NASDAQ:GOOGL). With TWTR stock up 3.6% at $15.13, the options pits are buzzing -- and speculative players are calling for even more upside over the next several weeks.

Taking a quick step back, TWTR call options are crossing at two times what's typically seen at this point in the day, and are outpacing put options by a more than 2-to-1 margin. The stock's at-the-money June 15 call is in the lead. With TWTR topping out at a session high of $15.42 earlier, it looks like some of the activity here may have been a result of speculators selling to close their positions.

Elsewhere, it seems safe to assume new positions are being purchased at TWTR's July 18 call. By initiating new long positions at this out-of-the-money strike, call buyers anticipate a rally north of $18 by the close on Friday, July 15 -- when back-month options expire -- and a move to levels not seen since early March.

Today's rush toward calls is nothing new in TWTR's options pits -- and neither is a bet on multi-month highs. In fact, over the past 10 sessions, the stock's June 18 call has seen the biggest rise in open interest, with over 6,300 contracts added. Plus, according to the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the majority of these positions have been bought to open in recent weeks.

While TWTR is already up 7.9% week-to-date, this is no way reflective of the equity's longer-term price action. Year-over-year, the shares have surrendered nearly 56%, and are fresh off their May 24 record low of $13.73. What's more, this rally appears to be running out of steam at Twitter Inc's (NYSE:TWTR) 50-day moving average.

TWTR daily chart June 14

Schaeffer's Expiration Week Countdown subscribers just made 200% GAINS on Twitter (TWTR) calls! Sign up now for a trial subscription.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI