Markets Turn Bearish On Twitter Deal Closing

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Twitter Inc. TWTR traded at four times its average daily options volume on Thursday.

“Put volume did slightly exceed call volume,” he added.

Check out other stocks making moves in the premarket.

There was a buyer of 1,500 of the January 50/40 put spreads at an average price of 91 cents per contract, Khouw mentioned. The trader expects Twitter’s stock to fall by at least 19% by January expiration, he added.

Buyers bet that the Twitter deal is unlikely to close by the end of the month and that “there is a possibility that Twitter will fall below that $50 strike price, perhaps much lower,” Khouw stated.

TWTR Price Action: Shares of Twitter declined by 3.72% to close at $49.39 on Thursday.

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Posted In: Social MediaShort IdeasOptionsMarketsMediaTrading IdeasGeneralCNBCMichael KhouwOptimize Advisors
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