Streaming Stock Could Be Short Squeeze Candidate

The equity is fresh off a one-year high

Digital Content Manager
Aug 2, 2023 at 2:59 PM
facebook X logo linkedin

The last time we covered Roku Inc (NASDAQ:ROKU) stock, it was drawing attention from options bulls after a new partnership with Shopify (SHOP). The equity is back in the spotlight today, last seen down 6.3% at $91.37, as it cools off from yesterday's one-year high of $98.44. It looks like this pullback may be short-lived, however, thanks to a historically bullish signal that could have ROKU adding to its 124.9% year-to-date lead.

ROKU Intraday

Roku stock's fresh highs come amid historically low implied volatility (IV), according to Schaeffer's Quantitative Analyst Rocky White, which has been a bullish combination in the past. White's data shows six other signals over the last five years when ROKU was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) was in the 20th percentile of its annual range or lower.

This is now the case with the stock's SVI of 61%, which ranks in the low 15th percentile of its annual range. One month after these signals, the shares were higher 67% of the time to average a 6.7% gain. From its current perch, a similar move would push the security towards closing this bear gap. 

The brokerage bunch is split on ROKU, with 13 calling it a tepid "hold" or worse, while 12 say "buy" or better. This means a shift in analyst sentiment could generate tailwinds. Plus, the 12.41 million shares sold short now account for 10.1% of the stock's available float, making it a potential short squeeze candidate.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI