Roku Stock Downgraded on Apple Risk

Citigroup cut its rating on MFGP stock to "sell"

Apr 4, 2019 at 3:04 PM
facebook X logo linkedin

The U.S. stock market is mostly higher today on optimism surrounding U.S.-China trade talks. Among individual stocks making notable moves are streaming specialist Roku Inc (NASDAQ:ROKU), U.K.-based software firm Micro Focus International PLC (NYSE:MFGP), and home furnishings retailer At Home Group Inc (NYSE:HOME). Here's a quick roundup of what's moving the shares of ROKU, MFGP, and HOME.

Roku Options Traders Target Bigger Losses

Guggenheim downgraded Roku to "neutral" from "buy," and cut its price target to $72 from $77, saying Apple's (AAPL) streaming service creates a new risk to the company's active user base. In reaction, ROKU stock is down 6.6% at $64.10. The equity earlier found a floor near $62, a familiar floor since a late-February bull gap that is currently home to its rising 40-day moving average.

Several options traders appear to be positioning for more losses through week's end. Amid accelerated activity -- the 137,000 options traded so far is more than double the average intraday amount -- buy-to-open activity has been detected at the weekly 4/5 60-strike put. If this is the case, put buyers expect ROKU stock to settle below the $60 at the close tomorrow, April 5.

Downgraded Micro Focus Stock Finds Familiar Support

Micro Focus stock is spiraling today, down 7.8% at $24.94. This comes after Citigroup downgraded the shares to "sell" from "neutral," saying MFGP had "run ahead of fundamentals." Despite being on track for their worst day since Oct. 24, the shares are finding a foothold in the $24.75-$25.00 region, which corresponds to their late-February highs.

A number of short sellers are likely kicking rocks amid the stock's slide. Short interest fell 28.4% in the most recent reporting period to 1.09 million shares, representing a slim 0.3% of the equity's available float.

At Home Options Bulls Have Kept the Faith

The shares of At Home are trading up 7.6% at $20.44, after Reuters reported the company is exploring strategic options, including a potential sale. The retail stock is struggling to close a bear gap from late March, which was sparked by the company's fourth-quarter profit miss and weak guidance.

HOME shares have now shed 29% in the past six months amid pressure from their 80-day and 120-day moving averages, but options traders have kept the faith. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 14.67 ranks in the 95th annual percentile, meaning calls have been bought to open over puts at an accelerated clip.


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