Twitter Short Risk Reversal Update

Mar 23, 2018
Twitter (TWTR) is an F rated stock, we recommended the following trade Monday, March 19th:
  • Sell May 18th 40 calls and buy May 18th 32 puts
  • Net Debit: $ 0
  • Upside Breakeven: $40.00
  • Downside Breakeven: $32.00

Today's update:

  • The stock is trading down 12% possibly as it relates to negative Facebook story.
  • May volatility is up 14.2%
  • Risk Reversal is currently trading for nearly  $2.75
  • We recommend selling the May 18th 29 puts for a $2 credit
  • New Net Upside Breakeven: $42
  • New Max Profit: $5
  • Insures a minimum $2 profit between $32 and $40