There’s nothing like a little corporate raider action to brighten up your week!
Just when the boardroom thought it was safe from rogue billionaires looking to be activist investors, look who’s back on the front page!
To be fair, when you’re the richest man on earth, everything you do is an event.
At this point, Tesla Inc. (Nasdaq: TSLA) CEO Elon Musk could probably draw a crowd to the opening of an envelope… Especially when that envelope could have a $43 billion buyout offer for Twitter Inc. (NYSE: TWTR) inside it!
Reports surfaced early Thursday that the social media lightning rod made an unsolicited offer to buy his preferred social media platform.
If accepted, the offer would catapult Musk from billionaire activist investor to full-blown billionaire corporate raider in just under two weeks.
And the news couldn’t have come at a better time for my Weekly Trade Alliance strategy!
The Return of the Billionaire Corporate Raider
Musk’s offer is a throwback to the heyday of high-profile hostile takeovers, ripe with dramatic front-page headlines.
Over the years, companies found ways to avoid and, in a lot of ways, defend against unwanted advances…
But when you have the kind of capital Musk does, it’s possible to be an exception to the rule.
It’s hard to take your eyes off of a billionaire leading a corporate raid… Watching Musk become the biggest Twitter troll of all-time is fantastic entertainment!
What’s more, there are good trades to be made from it…
It was obvious to almost everyone that Musk’s April 4 purchase disclosure wasn’t going to be the end of the story — especially after he declined a spot in the boardroom.
While the timeline for Musk’s next move wasn’t clear, it was tough to imagine Twitter dropping like a stone any time soon.
Add to that a big spike in implied volatility, and the stock was a prime candidate to sell some premium.
On Monday, the alert went out to Weekly Trade Alliance members to open the TWTR April 14 expiration $45-$44 bull put credit spread for about $0.31.
There were moments where it looked like the stock could flag below the $45 level. But Elon’s timely takeover offer helped give shares the boost they needed as we crossed the finish line for a quick 44.9% win on the spread!
Check out the video to get thoughts on Musk’s Twitter trolling from Senior Strategist Roger Scott, Joy of the Trade Head Trader Jeff Zananiri and myself from Wednesday’s WealthPress Live Roundtable…
P.S. Corporate insiders raked in a record-breaking $69 billion in trading returns in 2021…
It’s led many to believe these huge gains made by top-ranking corporate executives have spiraled out of control. And for good reason…
If you’re one of the many American investors who feel cheated, you’ll want to check out what I have to say…
I believe this $69 billion spiral is one of the best opportunities in the stock market… if you know how to play it, of course!