Twitter (TWTR) has been trading for seven days. Here’s how you make money on it.
Discussed in this article: Twitter Inc ( $TWTR )
I want to look at Twitter ( NYSE:TWTR ). You can see exactly how many days this stock has been trading, seven, three up, three down, one, you’ve got to call that a push. So what are we going to do with this stock?
First of all, like options the implied volatility is really kind of off the charts, so you can definitely do some complex option trades there, that’s for sure, and take advantage that volatility. But the way to really trade this, in my view, is you look at the 15-minute chart, suddenly this makes more sense.
You can see back here the stock does what it does, but here, after virtually an entire day, after drifting sideways, there’s your buy point. Then on Friday afternoon it drifts kind of sideways, there’s your buy point. If the stock moves up, say above $44.20ish or so, it’s probably going to be a pretty nice trade. You’ve got a lot on volume into the close, and that’s fine, that’s kind of always the case here.
Just watch Twitter ( NYSE:TWTR ) and see how it trades on Monday; if it breaks out above the upper Bollinger Band, that’s $44.05, if pushes up above there then you’re probably going to get a pretty good trade to the long side.