Trade Ideas
UOA PRO New Trade Idea TWLO 7-24
2,750 07August 200 calls bought in one order for 11.00 to 11.70 above open interest of 149 contracts. Stock 190.97-191.82.
New Trade Idea
Ticker: TWLO
Stock: 191.44
Trigger: 192.22
Targets/Resistance: 198.83, 201.88, 204.69, 206.09
Expiration Date: 31JUL
UOA: 2,750 07August 200 calls bought in one order for 11.00 to 11.70 above open interest of 149 contracts. Stock 190.97-191.82.
TWLO $309.22 Last.
Small 2 week out (EPS-Inclusive) OTM call buy. Stock is withstanding the selling that’s hitting other stocks today possibly because it has already “pre-slid” over the past week after putting in a lower high. As a result, the technicals are now messy aside from the LT which is still up. Given that it neared oversold at this week’s low, could it work back up on optimism about EPS? Seems so but likely needs the market to avoid getting walloped which it is seemingly toying with presently (in our view). Another prepper that may never trigger but can’t rule out “magic” in bull markets even when it looks like the party’s over.
Trigger: $192.22, today’s current high.
Strategy 1: Consider the TWLO 31July 197.50 calls for $4.00 projected at trigger level today. OTM but uncapped.
Strategy 2: Consider the TWLO 31July 192.50-207.50 call spread for $4.75 projected at trigger level today. Uncappable. Lower long strike but capped.
Strat Note: Liquidity is “sus” here so only trade it if you really like it. Options book “steered” us into these strats.
Targets: 198.83, 201.88 (50 SMA currently), 204.69, 206.09 (15 SMA currently)