In the days leading up to Tesla CEO Boss Elon Musk announcing a major stake in the social media company, some timely business on alternatives on Twitter has raised eyebrows among alternative analysts.
On Monday, Musk shared 9.2 percent of the shares on Twitter, making him the largest shareholder in the company, and Twitter’s shares rose 26 percent to more than $ 49 (about Rs 3,700).
The news follows bullish trading trends in Twitter options in recent days, with call options rising by $ 43 (about Rs 3,300) or more than 10 percent on Twitter shares by April 29, which traded significantly higher.
Joe Kankel, founder of OptionsHawk.com, an analytics firm in Philadelphia, said: “Of course someone seemed to be aware of creating a partnership of masks, information that would probably be readily available across the trading desk due to the significant size of the location.”
Businesses have stalled since betting on Twitter to move faster in a relatively short period of time, Kunkel said.
For example, just minutes before the end of the trading session on Thursday, someone bought 3,900 of the April $ 43 (about Rs. 3,300) calls for about $ 530,400 (about Rs. 4 crore). In all, 21,706 of these deals changed hands on Thursday, making it the fourth-largest block of contracts opened on Twitter overnight, according to trade alert data.
The deals will capture any share price move after Twitter’s expected April 28 earnings results.
With Twitter’s share price jumping on Monday, transactions are set to make big profits. For example, the April 29 $ 43 (about Rs 3,300) call, which traded at an average price of $ 1.26 (about Rs 100) on Thursday, changed its average price on Monday to $ 6.92 (about Rs 520), a profit of more than 400 percent, according to Reuters business analysis.
Since Mask tweeted March 25, Bullish Options has been drawing unusually heavy activity on Twitter that he is “seriously thinking” about creating a new social media platform, questioning Twitter’s commitment to freedom of speech, said Matt Amberson, president of the option analytics firm ORATS. Says
Steve Sosnick, chief strategist at Interactive, said: “I find it interesting that the calls were made in a hurry, towards the end of the last quarter. If I were a regulator, I would look at these businesses.” Brokers.
“It’s not a smoking gun, but it’s verifiable,” he said.
The US Securities and Exchange Commission (SEC) scans for unusual trades before announcing the news and has in the past used such data to bring insider trading probes, public filing shows.
The SEC did not immediately respond to a request for comment on Twitter’s options trading. Twitter and Tesla did not immediately respond to requests for comment on trading activity.
Thomson Reuters 2022