Options Bulls Bet on Rebounding Roblox Stock

RBLX is up 42% this quarter

Deputy Editor
Jun 28, 2021 at 2:57 PM
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Tech stocks are in the spotlight today, and Roblox Corp (NYSE:RBLX) looks to be riding the coattails of the sector's surge. The gaming name was last seen up 6.1% at $92.29, set for its highest close two weeks, as well as its first settlement north of its 20-day moving average in that same time period. 

Roblox stock, which went public March, had investors scrambling to buy in last month, which drove the security to a record high of $103.87 in early June. The equity quickly cooled from this peak, though its newly formed 60-day moving average neatly captured the month's selloff. The security is now up 42.3% in the second quarter of 2021. 

rblx jun 28

Options volume is running at a slightly quicker clip than usual today, with 93,000 calls and 32,000 puts across the tape so far -- 1.2 times the intraday average. It looks like many of these traders are eyeing the $95 level as a ceiling for the underlying stock up until the week's end, as the weekly 7/2 95-strike call is popular, with positions being sold to open here. The second most popular is the August 100 call. 

Sentiment surrounding RBLX is still high across the board. All three analysts in coverage call the stock a "strong buy." Plus, over in the options pits, 3.52 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) during the past 10 weeks. 

 

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