Tomahawk, WI 07/31/2014 (Basicsmedia) – Twitter Inc. (NYSE:TWTR) stellar results in the second quarter since its debuted in the stock exchange continue to attract analysts at Wall Street highlighted by the fact that it has experienced increased trade volumes in its Option Calls. Yesterday the social network experienced an increase in its Option activities as people made a rush to buy the company’s upside calls.
“There is a lot of options activities in Twitter today, and a lot of people were going out and buying Upside calls, but if you did not own the stock and missed on that on the rally, you might not think it has that much left in it,” said Mike Khouw on CNBC.
Khouw believes the stock has an upside potential going forward even if one did not buy the stock before the impressive second-quarter earnings. The best way at the moment to play Twitter’s Actions is to take advantage of its option premium which is high, consequently availing the option of selling the November 45 Puts which can collect up to $4.25 on sale, 10% off the strike price.
“Another way you can consider playing it is taking advantage of the fact that option premiums on Twitter are relatively high and you can look to sell the November 45 Puts. You can collect about four dollars and a quarter for that, almost 10% off the strike price” said Mr. Khouw.
The best part about trading Twitter Inc. (NYSE:TWTR)’s Option calls is that if the stock fails to move in the market, one has a chance of gaining on the premium side or forced to buy at the $45 strike price if the stock declines. There is still great optimism that the stock will substantially grow in the market as the company reported substantial improvement in the growth metrics of its user’s base.