I tweet. The White House tweets. Celebrities tweet. Investor relations departments tweet. While the numbers are a moving target, recent stats show that in seven years Twitter (TWTR) has built up a base of about a billion users creating about half a billion tweets per day, with peak loads (sounds like market data!) near 143,000 tweets per second!
For the options markets, Twitter has been a superstar product, going from zero to 900,000 contracts in the 28 trading days since options were listed on November 15! The underlying has been a superstar as well- with a flawless IPO at $26 on November seeing a 90+% first-day gain that had impressive staying power, sliding back a few bucks to $39 before rocketing higher this month (yes MONTH) to a near doubling in value and a brief stint above $75 the day after Christmas.
With 904,000 contracts trading yesterday, Twitter options blow past all other single-stocks for total volume, including Facebook (FB), Apple (AAPL), Tesla (TSLA), in fact only the SPDR S&P 500 ETF (SPY) traded more contracts than TWTR on the day.
While hundreds of names are blasting through new highs into year end (502 new highs set yesterday out of the 4,100 we track), TWTR is obviously a special case of a young hot story stock that may or may not turn out to be a long-term profit machine. My view (and that of most analysts I follow) is that TWTR share price is way ahead of itself and has put the firm into a total market-cap situation (around $38 billion) that makes little sense. One aggressive trade yesterday hit early in the day when a buyer snapped up Jan 70 puts: