More Downside For Twitter Stock After Musk's Withdrawal Of Acquisition Deal

Shares of Twitter Inc TWTR plummeted after Elon Musk announced his intention to terminate the deal to acquire the social media company.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said Musk had cast doubts several times on the claims made by Twitter, signaling that he was “either negotiating for a lower price or looking for a way to back of it.”

There has also been significant weakness in the overall markets, he mentioned.

Check out other stocks making big moves in the premarket.

Over 100,000 puts traded on Friday, Khouw said. “I don’t see a whole lot of upside for this stock in the near term,” he added.

TWTR Price Action: Shares of Twitter were down 7.01% Monday morning at $34.26.