Roblox Stock Careens Lower on Larger-Than-Expected Losses

Options volume is running at six times the intraday amount

Deputy Editor
Feb 16, 2022 at 10:40 AM
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Gaming name Roblox Corp (NYSE:RBLX) is tanking today, last seen down 25.2% to trade at $54.86, after reporting fourth-quarter losses that nearly doubled Wall Street's forecasts of 13 cents per share, while revenue of $770 million missed expectations as well. Roblox saw flat daily active user metrics, while engaged gaming hours came short of estimates as a pandemic-driven interest in gaming diminished.

Options traders are blasting RBLX in response. Already, 142,000 calls and 104,000 puts have exchanged hands, or six times the intraday average. Most popular is the February 55 put, followed by the 60 call in the same monthly series, with new positions being opened at both. 

Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 77 out of 100. This means the security has exceeded option traders' volatility expectations during the past year.

Today's negative price action has Roblox stock sitting just above its Jan. 28, all-time low of $53.65. The security has shed 56% in the last three months, helping bring its year-to-date deficit down to 46.9%.


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