Twitter Inc TWTR shares are trading higher by $0.10 at $17.34 in Thursday's session. For the second time this week, there has been huge call buying in the issue.
On Tuesday, an investor purchased 5,000 17 calls at $1.378, which will expire on March 3. Before the trade, there was an open interest of only 160. Shares at the time of the trade were at $17.52.
On Wednesday, an investor purchased 4,000 more calls at the same strike and price. Shares at the time of the trade were at $17.18.
Interestingly, those calls will expire nearly one month after its Q4 report, which is on February 9. On many occasions, large investors or institutions will use the options market to take large positions in an issue at a fraction of the cost of purchasing the shares outright in the open market.
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