Buying TWLO put contracts.
Twilio Inc. (TWLO) is a cloud-based company that helps businesses improve customer service.
This stock was a “work from home” winner during the covid crisis, but has been in a downtrend since then.
Despite the broad market rebound, shares of TWLO are still under pressure. If they weren’t able to rally over the last week or two, it’s unlikely the stock will find much traction going forward.
Meanwhile, shares trade near $106 despite the fact that TWLO will lose money this year and is only expected to earn $0.18 per share next year. So despite the pullback, TWLO still has a nosebleed valuation compared to expected profits.
Shares could fall sharply with any weakness in the broad market.
- Buy (to open) 5 TWLO July 15th $120 Puts
- Limit $19.50 or less
- The new position will represent roughly 9.6% of our Spec Model capital
- 10:53 Executed
- Bot 5 TWLO Jul 15th $120 Puts @ $18.30