Options News
$TWLO call prices surge fourfold
Bullish options traders collected exponential profits in Twilio today. On Oct. 25, Investitute’s tracking systems detected the purchase of 4,600 February $75 calls for $6.81 with shares at $67.10. This was clearly a new position, as open interest in the strike was a mere 175 contracts before the trade occurred. Those calls sold for $25.88 […]
Bullish options traders collected exponential profits in Twilio today.
On Oct. 25, Investitute’s tracking systems detected the purchase of 4,600 February $75 calls for $6.81 with shares at $67.10. This was clearly a new position, as open interest in the strike was a mere 175 contracts before the trade occurred.
Those calls sold for $25.88 today, about 4 times their purchase price. The stock rocketed 43.23% in the same time frame, a huge move but still nowhere near that of its options.
That follows heavy buying in the January $70 calls for $5.70 cited by Investitute co-founder Jon Najarian back in early August. Those options traded up to $28.90 today, 5 times their purchase price.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
TWLO rocketed 35.44% to $96.19 today. The cloud-communications company topped quarterly estimates and raised its outlook after the market closed yesterday.