RBLX is trading at three-year highs
Video game stock Roblox Corp (NYSE:RBLX) is up 1.3% at $74.75 at last glance, trading at three-year highs ahead and extending its 85.4% year-over-year gain ahead of earnings. The company will announce its fourth-quarter results before the open on Thursday, Feb. 6, and Wedbush last night raised its price target to $83 from $67.50 ahead of the event.
Options traders are chiming in beforehand as well. So far, 62,000 calls and 38,000 puts have been exchanged, which is 3 times the average daily options volume already. The weekly 2/7 83-strike call is the most popular, with new positions opening there.
Calls have been more popular than usual leading up to today, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) , RBLX's 50-day call/put volume ratio of 3.41 ranks higher than 98% of readings from the past year.
The equity's post-earnings history leans positive, with five of the last eight next-day moves ending in gains. This time around, the options pits are pricing in a large 18.6% swing, regardless of direction, compared to the 15.8% move the stock has averaged over the last two years.