To The Moon

​$Twitter(TWTR)$ agreed to be acquired by Elon Musk in just 10 days. If we are Twitter's shareholders,we absolutelyurge the board of directors to approve the acquisition. Otherwise, we may hard to see Twitter's share price above $50 again.

Please refer to my last article:Twitter Option Trading:Review and Consideration

Since the acquisition intention has been approved, it is only a matter of time now.

Currently, selling Twitter options is the best trading strategy due to the recent volatility in the market.You can sell both Call and Put options. This is actually to earn money from IV attenuation by selling straddles.

I sold CALL options at strike price $55 last night. But I didn't sell at the best price because I have other business at market open.​How to choice strike price?

Theacquisition price is $54.2, so the safest strike is $55. But $54 is also ok for it now. As I said before, there will be a 5% to 10% discount between the market price and the purchase price when the acquisition is officially successful.

Even if the acquisition is completed very soon, the SELL CALL of $54 is unfortunately exercised, which is equivalent to shorting Twitter at $54. The purchase price is $54.2, and the short position will lose $0.2 per share, but the premium must be able to make up for this loss.

Show the premium of $54 and $55 SELL CALL due in the next two weeks.

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The above is sell CALLs. Of course, we can also sell PUTs. How to choice PUTs ?

According to $54.2 *0.9 = $48.78, choice a strike price within $49. If you exercise the options because of the market crash, you will take over and wait for the acquisition to be completed without losing money. If you really don't want to exercise the options, you will sell at lower strike price, such as 20% off to $46.

The following tables show TWTR $46-$49 PUTdue in the next two weeks.

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​I am willing to take a small risk of being exercised, I will choose to sell $55 CALL + $48 PUT.

If I choose to expire on May 6, the total premium is $68. Because the share price is already very low, I will open 5 contracts each side. The 11-day income is $680, which is actually very good.

Everyone has different risk preferences. Everyone can adjust your own strategies according to your positions and risk preferences, hoping to help you.

$Twitter(TWTR)$​$Tesla Motors(TSLA)$​