I have said multiple times: politics do not matter…
…except when they have a deep economic impact.
Over the weekend Twitter permanently banned President Trump.
Let me be clear…this is apolitical…
Banning President Trump is a bad economic decision for Twitter.
The president has millions upon millions of followers.
These people are going to use Twitter a lot less.
That is bad for ad sales.
There is also potential political blow back here, although that is more hazy.
The point is while Twitter is off 6% today. Take a look at what happened to the volatility of the options:
TWTR vol went from 50 to almost 80 overnight.
This is an example of politics hitting a stock or industry as we are seeing some blow back on other tech names along with TWTR.
Events like last week really do not have an immediate impact on financial markets, but the action politicians or private companies take in response do.
Speaking of which, Ill be discussing Twitter and all the other political happenings from the last week in a special webinar with my DC Insider Frank Gregory.
Our trade from our last webinar, which was to buy options on CVS, take a look at a charge and you tell me how we are doing.
Your Only Option
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