Twitter Trade 3/22/17
Due to pretty meager earnings, Twtr has fallen by a huge amount in the past two days. But, even though the stock fell hard, there was one moment when the stock moved higher.
I won a trade yesterday by buying 17 strike calls when the stock was in the 16.50’s and sold it at around 17.02. A nice small profit. Luckily I did sell quickly because the stock has fallen to the 15.50’s area. In my view, it is a buy now and have bought the 16 strike calls for March 17th.
There are several reasons for my decision: Jack Dorsey will either leave Twitter (will go up), leave Square (and will be able to focus on Twtr full time, or there will be a buyout. All three reasons are good enough to buy the stock.