Twilio Options Offer Attractive Investment Opportunities

Investors are considering new option contracts for Twilio Inc (TWLO) that present appealing opportunities. The new contracts provide options for both puts and calls, allowing strategic trading that could positively influence stock prices.

Date: 07-03-2025

AI Rating: 7

Options Trading Insights
New options for Twilio Inc (TWLO) with a June 2026 expiration are now available, providing investors with various possibilities. The analysis indicates that the new contracts could drive interest due to their potential returns.

For the put contract at a $105.00 strike price, the current bid of $17.35 would result in an effective purchase price of $87.65 if executed. This represents a 2% discount to the current share price of $107.68, making it an attractive alternative for those interested in buying the stock. If this option expires worthless, the premium would yield a notable 16.52% return based on the cash commitment, reflecting a 12.89% annualized return.

Turning to the call side, the contract at a $115.00 strike has a bid of $20.55. If investors buy shares at $107.68 then sell-to-open this call, the total return could be 25.88% should the stock reach this price by expiration. This contract offers a 7% premium over the current price, albeit with a 40% chance of expiring worthless, which would enable the investor to keep both the shares and premium collected, resulting in a 19.08% additional return.

The implied volatility rates of 50% for the put and 45% for the call, alongside a trailing twelve-month volatility of 43%, indicate market expectations around price fluctuations. Such dynamics can significantly impact stock price performance based on investor sentiment and trading activity related to these contracts. Overall, these options provide strategic opportunities that could affect TWLO stock prices positively depending on how investors respond.

Stocks: TWLO