Technical Pressure Caps Twilio Stock’s Post-Earnings Rally

Options traders are targeting surging Twilio stock after earnings

Twilio Inc (NYSE:TWLO) stock is on the rise today, after the company posted upbeat third-quarter results and raised its current-quarter forecast. At last glance, TWLO was up 5% at $58.60 — earlier as high as $60.24 — and on track or its fifth day of gains in the last six.

Several analysts adjusted their price targets in response. So far, the stock has received no fewer than three price-target hikes, the highest from Bernstein to $73 from $68, and two price-target cuts. Now, the 12-month consensus price target of $67.59 sits at a roughly 15% premium to current levels. 

On the charts, a convergence of several long-term moving averages are keeping a cap on today’s gains. Notably, the 100-, 180-, 200-, and 320-day trendlines are all hanging out around the $60 mark. Since the start of the year, TWLO is up 28%. 

Meanwhile, the heavy volume in the options pits today is strikingly bullish. So far, 29,000 calls and 14,000 puts have been exchanged, which is 11 times the volume typically seen at this point. The weekly 11/10 60-strike call is the most popular, with new positions opening there. 

Leave a Reply

Your email address will not be published. Required fields are marked *