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TWTR

TWTR - Selling premium into high IV environmentThis morning I sold 160 strike naked puts for $1.06 credit each. These options have a 30 delta at the time. This is a neutral to bullish strategy. The idea behind this trade is a contrarian play into high implied volatility . The idea being that after such a massive selloff the bears will exhaust soon and we will see a pop in price and volatility will come out of these contracts when that happens. My defensive strategy will be if TWTR continues to fall and breaches the break even of my short puts I will then convert this trade into a short straddle, selling the 160 calls, which will neutralize the deltas (reduce directional risk), and will also collect premium to further extend my break even and reduce cost-basis.
NYSE:TWTR
by krugman87
3
Twitter on sale.Twitter has presented us with what could be a great buying opportunity resulting from a knee jerk wall street reaction. We currently are under the 100 EMA and should hold the 200 ema. Twitter had its brush with death earlier this year and since then has made a solid run. I think we will retest the bounce on the oversold region of RSI and at that point I would enter long on confirmation. This could be an opportunity to catch Twitter on sale. If Twitter cleans up their issue with BOTS I think they represent a great long term value play.
NYSE:TWTRLong
by UnknownUnicorn2073191
THE WEEK AHEAD: GOOG, AMZN, TWTR, NFLX, GLD, EEM, SPYTwo biglies announce next week: AMZN, on Thursday after market close, and GOOG, tomorrow after market close. I generally don't play these via options because they are not only large notionally, but options liquidity in them is fairly poor with wide bid/asks, making fair price fills difficult and/or subject to a lot of patient price discovery, which implies that exiting where you want may be problematic. I figured I'd nevertheless mention them, since they can arguably move the markets ... . One underlying in particular draws my attention for a potential earnings announcement volatility contraction play -- TWTR. It has the kind of rank/implied volatility metrics that I look for in these kinds of setups (rank 67/implied 62). It announces on Friday before market open, so look to put on any play you're going to do before Thursday close. Most of the other underlyings announcing have implied volatilities in the 30's or below Preliminarily, the August 3rd 38.5/48.5 short strangle pictured here pays 1.94 in credit with a 69% probability of profit, break evens of 37.56/50.44, delta of -.5 (neutral), a theta of 15.25, and a 50% max take profit target of .97. Since it announces Friday, my tendency is to go out another week so that I don't have to scramble on Friday in a panic to manage any broken trade. Alternatively, the August 3rd 43.5 short straddle is paying 5.28 with break evens at 38.22/48.78, with a 25% max take profit target of 1.32. With earnings in the rear view mirror, NFLX volatility remains fairly decent here (35.5%) -- potentially enough to get one-third the width of the wings in a five wide camped out at the 20 delta in the August expiry: the August 17th 330/335/390/395 iron condor is paying 1.72 at the mid price with a buying power effect of 3.72 and break evens at 333.28 and 391.72. I say "potentially" because I'm looking at after hours quotes and the entire setup is bid 1.41/mid 1.72/ask 2.04. A September 20-delta setup -- the 320/325/410/415 -- is paying 1.80 at the mid, with more generous break evens at 323.20/411.80. On the exchange-traded fund end of things: volatility remains in Brazil (EWZ, 32.4) and petro (XOP: 28.1). Lastly -- the major food group directionals: GLD bounced off a level I said I would consider a long at last week -- 115.50, so I may look to take a small directional long there if we revisit that level. EEM bounced nearly $2 off of its 52-week low of 42.15 and would consider a bullish assumption directional shot if this strength proves transitory in the short-term. SPY is revisiting that 280 level that has been pesky overhead resistance since the beginning of the year, so I could see adding at least a split month downward put diagonal, particularly if your portfolio might be in need of some short delta here. As alternatives, I would consider pulling the trigger on an IWM short delta setup at 170-ish or the QQQ's at 180.50 for similar reasons (i.e., add short delta on strength).
NYSE:TWTR
by NaughtyPines
5
QUICK BUY SNAPThere is an amazing relationship between Twitter and Snapchat. They both have had great earnings, TWTR will most likely correct itself this next week, while SNAP will remain bullish. Watch the integration of Bollinger Bands, I feel could mean a possible adjustment in their relationship regarding price. Also, about Twitter, I love this app and will take it long term over any other social media platform, it seems like Trump has given it the boost it needed, I can see it is remaining as a future powerhouse of communication - people are able to express their views in an open-fashion and the app has worked to interconnect them with political figures and news channels - I just feel there needs to be greater international expansion...
NYSE:SNAPLong
by FrancescoChiappe
OPENING: TWTR AUG 17 48 SHORT STRADDLE... for a 7.61/contract credit. Metrics: Max Loss/Buying Power Effect: Undefined/~$909/contract Max Profit: $761/contract Break Evens: 40.39/55.61 Theta: 8.64 Delta: 24.9 (Neutral to Bullish) Notes: Another trade attempting to emulate a ~30 delta short put, while bringing in the greater extrinsic of a short straddle. Will take profit at the lesser of 10% of buying power effect or 25% max. Additionally, manning up and playing this through earnings in 17 days due to high implied volatility rank/high implied volatility.
NYSE:TWTRLong
by NaughtyPines