Twitter, Inc. TWTR – Options Ideas
Toward the end of 2014, TWTR underwent a bit of a downturn on the heels of some insider selling and the general sluggishness of the market. The stock was beaten back into the low $35-range, and over the past couple of sessions it has done a good job of rebounding back to its highest level since the end of November. Our interest in TWTR relates specifically to the options chain, as we’ll look to take advantage of the recovery trend that’s currently in effect.
In particular the $38 (Closed @ 1.32) and $39 (Closed @ .83) Weekly Calls are catching our eye for a day-trading idea today. There is key resistance on the chart at the 50DMA 39.35, and in the premarket so far we’ve already seen trades as high as 39.60. Therefore, we’re watching for some early morning profit taking followed by a rally, where those contracts may provide some intraday trading opportunities later in the day.
For more of a long-term swing-trade idea, we can monitor the February $40 Calls (Closed @ 2.70).
Frontline Ltd. FRO
FRO made a nice move for us after appearing in yesterday morning’s report; the stock traded in a daily range from 2.83 to 3.27 (+15%), and did so on healthy volume to the tune of roughly 9X the 3-month average. We continue to watch FRO this morning as it gaps up in the premarket, with trades already having gone off as high as 3.61, which represents an overall increase of 28% over yesterday’s observed low.
As noted in an article on The Street, some bullish comments made about FRO on CNBC yesterday could be partly responsible for the strong session.
Extended Watchlist:
JCP, GALT, ARNA, PKT, NLST