Roku Stock Stays Hot After Analyst Upgrade

Roku options are attractively priced at the moment

Managing Editor
Jul 3, 2018 at 9:56 AM
facebook twitter linkedin

Roku Inc (NASDAQ:ROKU) stock is up 4.1% to trade at $45.07, after Oppenheimer upgraded the streaming name to "outperform" from "perform," while setting a $50 price target. The analyst in coverage believes the company's new Roku Channel feature will boost video advertising revenue.

Oppenheimer's price target sits in territory Roku stock has not traded in since before a mid-February bear gap. However, since bottoming at a 2018 low of $29 in early April, the security has added 55%, and is now on track for its fourth straight win.

There's room for more analysts to upwardly revise their outlooks on the streaming giant, should this positive momentum continue. At last night's close, six of the 10 analysts in coverage rated the stock a tepid "hold." What's more, ROKU's average 12-month price target of $43.40 is a discount to current trading levels. 

In the options pits, buyers have handily favored calls in the past 10 days. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculative players have bought to open 19,778 calls in the last 10 sessions, compared to 9,438 puts.

It's a great time for premium buyers to target short-term options on ROKU, too. This is according to its Schaeffer's Volatility Index (SVI) of 56%, which ranks in the low end of its post-IPO range -- indicating premium on short-term contracts is relatively cheap at the moment, from a historical volatility standpoint.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners