Call Spread on TWLO on 7/31/2023

Twilio Inc. (TWLO) provides software and communications solutions in the United States and internationally. 

The company operates cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications.

Its customer engagement platform provides a set of application programming interfaces that enable developers to embed voice, messaging, and email interactions into their customer-facing applications. 

On Friday it was disclosed that Amazon has taken a 1% stake in Twilio. Shares surged on the news and we expect the rally to continue.

We will be trading August 25th Call Options

Entry Point: $64.00

Trading Range: $41.00 to $98.67

Trade Buy 1 August $64.00 Call at $5.25 Sell 1 August $70.00 Call at $3.10 For a net debit of $2.15 Profit/Loss Analysis Breakeven at $66.15 Maximum profit is $385.00 at strike of $70.00 Maximum loss is ($215.00) at strike of $64.00 Closing Summary Sold 1 August $64.00 Call at $0.40 Bought 1 August $70.00 Call at $0.00

Position closed on 8/21/2023 at price of $0.40 with a -81.40% loss in 21 days.

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