Where’s the floor on Twitter ($TWTR)? I’m telling you exactly where it is! – April 14, 2022
TWTR
I want to look at Twitter ( NYSE: TWTR ) today. This is the “funnest” thing that I have seen in a long time, with what’s going on with the G.O.A.T. When it comes to trolling you don’t get any better than Elon Musk.
Everybody by now knows the deal, he bought enough shares, almost 10 percent of the company, that popped the stock. They are going to take him on the board, and then he kind of thought, wait a minute, if I am on the board then I can’t buy more than, basically, much more than I have, so I don’t want to do that because I hate these scumbags. And so he declined his board seat.
And then just today, I think it was this morning but it might have been yesterday, I don’t remember. I think it was this morning he hits a tender offer for the company at, I think it was $54.00 a share, it ran up to about $48-$49.00 so it didn’t really get there.
Here’s the thing, you can hardly trade this stock technically except in this way. This is where it was before this whole maelstrom happened. This is where it gapped up to when the news about Elon came out. This was a base for the shareholders, meaning you if you are a trader.
It probably would have been better if this hadn’t happened because Tesla ( NASDAQ: TSLA ) was starting to go up anyway, though you could take the other side of that argument and say it was because Elon was buying all of these shares.
There are always dirtbags on Wall Street that know that, and magically, their brothers or their wives start trading. Nobody knows, obviously, nobody is doing anything wrong, of course. It’s Wall Street, we all know that everybody is totally aboveboard there, so it might have just been a coincidence.
In any event, as I am looking at this now, I see this as being the trading box. I would say the stock is probably going to trade in here for a bit but there is just so much headline risk that it kind of becomes untradable for anything other than quick trades because you just don’t know what is going to happen. But once Elon Musk gets into the punch bowl like that, this stock is not going to go back to normal. And so, don’t expect a return to normalcy.
If you are an options trader, frankly, you could sell puts all day long. Sell puts, the $40.00 puts, I think they even have 42.50s, but you can sell puts on this and do quite well because there is now an underlying bid for this stock. Even if Musk goes away, Prince Charming, whatever the guy’s name is over there where all of the sand is, even if all of that stuff goes away Twitter ( NYSE: TWTR ) is not coming back below $40.00.
Free Chart