TWITTER: Twango On A Special Situation

Let's Dance...

Executive Summary

• Jack Dorsey out, Twitter becomes more tradable for us.

• Elon Musk comes in with a high offer of 54.20.

• Premium above 54.20 should be 0 in most scenarios.

• Selling premium at 55 or above seems a no-brainer.

1. Why Do I Care Right Now?

I was reasonably happy to see Jack Dorsey leave Twitter, a company with enormous potential and an even more significant hidden value more likely than ever to be unlocked finally. At the end of March 2022, when TWTR price seems to bottom and the chart is creating a higher high (red circle on chart below), I went long the Call 40, Jan 2024.

A few sessions later, the price jumps from USD 40 to 54 - Elon M. has a vision for Twitter… Although the call options value doubles within a week, all long-term aspirations to multi-bag my returns are gone.