Twitter Inc. (TWTR) Presents Interesting ‘Options’ Trading Opportunities for Investors


As we all know, shares of Twitter Inc. (NYSE:TWTR) stock have taking a huge beating as of late.  However, the stock has shown quite a nice recovery since reaching its 52-week low.  That low apparently is where the stock found its bottom.  Over the past couple of months there has been much speculation about whether or not another company could come along and acquire Twitter Inc. (NYSE:TWTR), a move which could potentially spell huge profits for investors who remain long in the company.

At the same time though, some investors are beginning to turn to stock options, especially “call” options as a means to potentially hit big on a possible acquisition.  Future stock options can be obtained at the fraction of the cost of traditional shares, but they also pose a much larger risk.  Investors who are willing to take that risk, stand a chance to earn a potential reward if shares of Twitter Inc. (NYSE:TWTR) do jump up in the future.

April 2016 options which have calls on them for April 15, 2016 are selling at just  $1.45 per call with a strike price of $18.00.  With the stock trading at just $18.03, this means that if shares of Twitter Inc. (NYSE:TWTR) were to reach $19.49 or hire by this date, holders of the call would stand to profit.  If for example shares jump up to $25.49, investors would make $6.00 per call they purchased for $1.45.  You would think that an acquisition of some sort would have the potential of sending shares to around this price point.

Options are risky but this is certainly an interesting opportunity for those risk takers out there.