What a crazy run in twitter. 11/7 twitter opened to the public up over 100%. Over the next 13 days twitter lost 20% of it stock value. The next 13 days it went on a 55% run. a 3 day pull back of 10% and then another 5 day run for another 36%. On that 5 day run implied volatility went from 60% to over 120%. from the lows of 11/25 to the peak of 12/26 the stock was up a little over 90%. On 12/26 there was huge amounts of call buying with IV stretching 140%! With this amount of huge premium and dramatic stock move, it seemed only appropriate to sell lots of premium! As you can see the next day IV got crushed as well as the stock price. Hopefully IV will remain elevated and see more two sided markets in twitter for 2014, this could be a great trading vehicle for some time.
