What’s behind Twitter call action

A short-term play apparently sees limited upside in Twitter.

optionMONSTER systems show that a trader bought 3,673 Weekly 42 calls expiring tomorrow for $0.11 and sold the same number of 41.50 calls at that strike for the bid price of $0.15. Volume was above previous open interest in each strike, so this is new positioning.

The trader takes in just $0.04 in this credit spread, which is the maximum profit. He or she risks $0.46 if TWTR is above $42 by the end of tomorrow’s session.

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