Q2 STOCKS TO BUY

Pre-Earnings Call Buyers Take Aim at Twitter Inc (TWTR)

Twitter Inc (NYSE:TWTR) will report earnings after the bell

Jul 26, 2016 at 2:54 PM
facebook X logo linkedin


Twitter Inc (NYSE:TWTR) earnings will be released after the closing bell this evening, and the stock's options pits are buzzing with eleventh-hour bettors getting in on the action. Specifically, TWTR puts are changing hands at four times their typical intraday rate, but calls still have the lead on an absolute basis.

Speculators are largely placing short-term bets, too, with the weekly 7/29 series dominating today's options action. Most popular today is TWTR's weekly 7/29 20.50-strike call. Data from the International Securities Exchange (ISE) confirms many of these calls have been bought to open, meaning traders are betting on the shares to rally above the $20.50 level before the close this Friday, when the weekly options expire.

Call buying has been a popular strategy in TWTR's options pits in recent months, per the stock's 50-day call/put volume ratio of 3.91 at the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- just 4 percentage points from an annual high. But this seems like a particularly bold bet heading into earnings, as the stock has made a move to the downside in the session follow earnings in six of the last eight quarters -- including the last five in a row. Overall, options are pricing in a hefty single-session post-earnings swing of 16.9% in either direction, compared to the stock's average move of 11.5% in the session following its last eight reports.

Technically,Twitter Inc (NYSE:TWTR) has been a long-term laggard, giving back more than 20% in 2016. The shares were last seen off 1.7% at $18.34, but for now seem to be holding on to the round $18 level.

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

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter