Buy Alert: October 16, 2015

| October 16, 2015

Buy Alert:  October 16, 2015

 

Trade Details

Buy Twitter (TWTR) November 20th 33 Calls for $1.60 or better (lower)

 

Why?

I had it in mind to do a put trade today, as the market is seeing some overbuying in certain sectors.  However, Steve Ballmer taking a 4% stake in TWTR is too juicy to pass up.  Despite growth and product issues, TWTR continues to attract major investment dollars from outsiders and insiders alike.  Clearly, the smart money believes the micro-blogging giant has a bright future.

With the stock trading well below the 200-day moving average, now’s a good time to buy November calls.  Conservative investors can take profits at $35.  Aggressive investors can hold up to $38.  For risk control, conservative traders should exit at $27, while more aggressive traders can hold down to $25.

 

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Category: OTW Buy Alerts