Twilio (Ticker: TWLO) along with a lot of tech stocks got slammed today. At mid-day, it was down ~6%. But, there was no outside fundamental driver and in that absence, we turned to look for technical support. Take a look at the chart:
Look where it found support. Right at the 50-DMA as we had expected. Here is the signal we put out:
“Based on our educational methodology, an ENTRY signal has been generated:
Sell (opening) the TWLO August 2nd WE 139 put
Buy (opening) the TWLO August 2nd WE 137 put
For a CREDIT of $1.00 or more.
This signal is not GTC, is a day order only and is valid with TWLO trading $139.00 or higher.
WE WILL EXIT THIS POSITION PRIOR TO TWLO EARNINGS on 7/31.”
We are laying even odds here. We are selling a $2 wide put spread and collecting $1.00. So, the most you can lose is the width of the spread less any premium collected. And the most you can collect is the premium collected. Risk one dollar to make one dollar or even odds.
Follow me on Twitter @MikeShorrCbot
