How ROKU Options Traders Just Won Big in Under 2 Weeks

Roku options traders managed to double their money in under two weeks

Managing Editor
Jul 11, 2019 at 1:20 PM
facebook X logo linkedin


Subscribers to Schaeffer's monthly Options Advisor newsletter just doubled their money with the Roku Inc (NASDAQ:ROKU) July 90 call option recommendation. Below, we'll explain how this options trade hit its expected target, leaving speculators with a big win.

When we initially recommended the call to subscribers on Friday, June 28, we noted the shares of of ROKU had been treating bulls well during the past year, the stock rallying to record highs in June, extending its upside from a strong May earnings performance. Since then, the equity had pulled back to its 40-day moving average, near the 200% year-to-date return level. This potential technical support, coupled with an overly bearish sentiment backdrop, suggested that the streaming technology concern could keep going higher.  

Specifically, almost half of the covering analysts still had a “hold” or worse ratings in place, suggesting Wall Street would potentially deliver bullish brokerage notes in the near term. Also, short sellers had been covering, with short interest down 17.5% in the last two periods – though 8.6% of the float was still dedicated to short interest, meaning more covering looked possible. This would be yet another tailwind for ROKU stock, especially since it was likely these traders were holding losing positions. Traders were told to note, too, that the July options series had a much lower implied volatility than the longer-term August series, which will capture the company’s next earnings release.

From the time of our recommendation, the streaming giant quickly bounced from its late-June pullback. Supporting the shares' surge was the aforementioned 40-day trendline, guiding ROKU to an intraday peak of $105.89, Wednesday, June 10. This allowed subscribers to lock in a 100% profit in less than two weeks.

Revised Daily ROKU with Entry Exit Dates

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI