A real business is born. Time to profit.

For years, a big question lingered around one of the world's top social media firms: can it monetize its user base? Anyone will use a free service, however real businesses need to earn revenue that can be converted into profits. For a long time, Twitter (TWTR) attracted users and failed to earn revenue and profits. At the end of 2013 Twitter was valued at $36 billion with a 55 price to sales ratio (P/S). Price to sales ratio over 10 are crazy valuations. In addition the company lost $651 million dollars. Early IPO investors are living with the painful memory of what happens when the hype dies.

Today Twitter looks much more attractive with a successful monitization of users through advertising. Now that the company is an actual business with revenue and profit it is valued at $29 billion (still below the peak valuation in 2013... that is a long time to wait).

Twitter has become a hub for the latest news and opinions from eyewitnesses, industry experts, and others with 280 character tweets often with links, pictures and videos. Last quarter, Twitter's mDAU hit an all-time high of 134 million. The company has increased its average revenue per user by 24% over the past year. Over the last year Twitter generated $3.2 billion in sales with a 21% profit margin.

Twitter has formed a rounded bottom. With support around $35 now is a great time to begin investing.

Trade details for big cash payment:

Sell to open, the July 19, 2019, $36 puts on Twitter for $1.50 using a limit order. Earn a 4.2% payout on your purchase obligation for agreeing to buy shares at $36 per share (each option represents 100 shares).

At expiration if shares are above $36: put sellers will keep the $1.50 for a 36.2% annualized return.

At expiration if shares are below $36: put sellers will buy shares at about a 5% discount to yesterday's price. Then you can sell covered calls on your shares to earn even more income.

Use a stop loss at $29.50. Shares will have broken its recent uptrend and is best to sell of a loss to protect your capital.

Take advantage of Twitter's turn around and collect cash by selling puts today.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.