Don’t worry about selling Twitter shares
Shareholders of the social media giant Twitter Inc (NYSE: TWTR) are preparing for their annual meeting, scheduled for Thursday, May 27. The rival of Facebook (FB) has now returned to its breakeven point since the start of the year, an area that is home to previous highs. In addition, stocks recently recorded a 50% Fibonacci retracement from its March pandemic low to its February 2021 high, which also aligns with support for the 200-day moving average. With those technical layers in place, now is a great time to buy TWTR calls.
The security also sports premiums at attractive prices right now. TWTR’s Schaeffer Volatility Index (SVI) of 41% is above just 2% of all other readings for the past year. Additionally, its Schaeffer Volatility Scoreboard (SVS) sits at a possible 95 out of 100, indicating that the stock has managed to beat those volatility expectations over the past 12 months.
Our recommended call has a leverage ratio of 5.3, and will double to a 19.2% pop in the underlying stock.