A Twitter Option Play for Higher Risk Appetite

 

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stockcharts_twtr_05102016

Source: Stockcharts.com (May 10, 2016

Twitter Inc (NYSE:TWTR)
Current Price: $14.30
Twitter Option Play
Options Setup: 1 contract = 100 shares
TWTR Short Put @ 13 June 17, 2016 1 contract => $0.39 Cost $1.57
TWTR Put @ 11 June 17, 2016 1 contract => $0.09 Cost $0.48

Max. Profit: $27.95
Max. Risk/Margin Required: $172.05
Return on Margin: 16.25%

To establish the trade, you need $172.05 margin available
Outcome date: June 17, 2016, 38 days
Earning date: Jul 26, 2016 Q2 2016 Twitter Inc Earnings Release (Estimated) – 4:00PM EDT

Trade initiated on May 10, 2016 for $27.95 max. profit

*Do not intend to own this stock. Willing to take max. loss of $172.05 if TWTR falls below $12.72.


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