Social media giant Twitter Inc (NYSE:TWTR) is scheduled to report its next batch of earnings after the close of trading today. Much is riding on the earnings report — and more importantly, on the growth outlook and plans after Twitter sorely disappointed investors at its last report in late April.
Twitter stock has since been largely stuck in its tightest trading range ever, which at the margin increases the chances of an outsized move in either direction after today’s earnings report.
The options market is expecting the stock to make about a 4.5-point move in either direction after earnings, which would represent a 12% to 13% move. This would clearly push the stock well out of the tight trading range that has taken hold of Twitter stock since late April. Options implied volatility is currently in the 83rd percentile of it’s 542-week range (or, in other words, it’s notably high).
Read my full analysis HERE