Jack Dorsey has stepped down as Twitter's CEO
Jack Dorsey, co-founder and chief executive of Twitter Inc (NYSE:TWTR), is leaving the company effective immediately. In a release, Dorsey said he is leaving because Twitter is "ready to move on from its founders." Parag Agrawal, who most recently served as the social media name's chief technology officer, will assume Dorsey's position effective immediately.
Though the equity was surging earlier today, it was last seen trading flat at $47.06. The security also briefly traded above the 10-day moving average, which has pressured the shares lower since October, though it is now back below this trendline. Year-to-date, Twitter stock has shed 13.4%.
Options traders are blasting the stock in response to the announcement. So far, 227,000 calls and 90,000 puts have crossed the tape, which is four times what's typically seen at this point. Most popular by far is the weekly 12/3 50-strike call, where new positions are being bought to open.
The options pits have been bullish of late, with a fierce appetite for calls. This is per TWTR's 50-day call/put volume ratio of 2.97 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 76% of annual readings, indicating calls have been getting picked up at a faster-than-usual clip in the last 10 weeks.
For those wanting to speculate on TWTR's next move, options look like a solid choice. The equity's Schaeffer's Volatility Index (SVI) of 46% sits higher than 20% of readings from the past year, suggesting options players are pricing in low volatility expectations right now.
Plus, Twitter stock's Schaeffer's Volatility Scorecard (SVS) sits at 98 out of 100. This indicates the equity has exceeded options traders' volatility expectations in the last 12 months -- a boon for buyers.