Twitter Inc (TWTR)

[JetsamTrader]

Agreed... although you can also play bullish with calls. TWTR has been very volatile and you're not scrambling to cover shorts when the pps spikes for no fundamental reason beyond sentiment. With options, you can make a big bet with time to sell some on peaks to cover the rest of your bet and ride for free or bail out before getting skunked too badly. Worst case is they expire worthless and you lose a few grand. Best case is selling the contracts at 3x-5x the buy-in with a much better pay-off than just trading shares. You can lose 3 out of 4 times with options and still come out even or ahead.

I will say it's getting tougher to make a big score the longer TWTR stays in this rut where even volatility has settled into predictable patterns. Option contract traders have been fine tuning their algorithms to make it less risky to pay out. For this coming Q earnings in early February, I used to be able to buy options that expire a few months past the Q date and at a strike price a few dollars below/above the current pps for pennies per contract. Now puts are going for well over $1 per contract at a strike several dollars away from the pps which is just another indicator that TWTR is way over-bought right now. I don't see a big play of any kind right now tbh.