Twitter is in focus, as the stock manages to retain the 17.50 level. Pre-market the stock is trading 17.64.
TWTR offers opportunities with weekly options.
The stock gapped higher on Monday, for an additional 6.4%, as investors concluded Chief Executive Jack Dorsey’s share purchases would lead to more good things in the short term. The company announced a partnership with Bloomberg to create a new 24/7 streaming service. Volume spiked was well, with 47 million shares changing hands. That’s nearly triple the full-day average of 16.1 million shares.
Technically speaking, Twitter broke a 7 month downtrend last week. The stock catapulted through the 200ma on Monday, before settling just below by the close. RSI is strong and MACD shows bullish momentum will likely continue.
2017 5-MAY 17.0 calls have (4) days to expiry – close 0.58
We already have a position in common, so we intend to enter this trade, by selling 1 option contract per 100 stock shares of the 2017 5-MAY 17.0 call option for $0.58 or better. This trade will expire in 4 days and return 0.8% if the stock is assigned at expiration.
I like the weeklies, as we intend to be in and out of covered calls quickly; four days or less.
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