Market Rebellion co-founder Jon Najarian noticed unusual options activity in Twitter Inc (NYSE:TWTR) about a week before Tesla Inc (NASDAQ:TSLA) CEO Elon Musk disclosed a 9.2% passive stake in the social media company.
He took profits on the call options he bought ahead of the announcement, but he doesn't think the stock is done moving higher.
"I think this stock hits $75 - $80 by year end," Najarian said Tuesday on CNBC's "Fast Money Halftime Report."
Related Link: Twitter Options Volume Explodes After Elon Musk Buys Stake
Najarian booked profits on the $44 strike calls he bought last week following roughly 800% gains, but he isn't exiting the trade. Instead, he's rolling up to a higher strike and buying more time for a continued move higher, he explained.
Najarian bought the $50 strike calls expiring in June.
TWTR Price Action: Twitter shares have traded between $31.30 and $73.34 over a 52-week period.
The stock was up 4.17% at $52.08 at time of publication.
Photo: Stock Catalog from Flickr.
