Options Expert: Someone Will Figure Twitter Out, Sooner Or Later

Nic Chahine was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Chahine, author of Create Income With Options Spreads, discussed several subjects in the show. Among them was Twitter Inc (NYSE: TWTR), which saw its CEO resign and its stock plummet recently, to levels under $34.

Last time the stock got hammered, Chahine declared he took out put spreads that he described as “winners.” Yesterday, he also took some calls -- on a hunch -- to capture a move up.

Related Link: Here's Why Twitter Just Got Downgraded At MKM Partners

The expert added that Twitter generates plenty of discussion among investors. However, “someone will figure it out," he said.

"It’s too good an asset to let it die. If the stock market will start beating it up, it will be cheap enough for somebody to pick it up or partner up with somebody.”

“So, as an asset, I don’t think the world wants it to go away,” Chahine added. “I use it as my main source of information. I don’t listen to news any more; everything hits Twitter first.”

Betting on the value of the asset, the investor says he took a long shot on the stock, regardless of the shorter-term prospects.