Roku Options Trading: Analyzing Market Sentiment

Recent analysis indicates that major investors, often referred to as whales, have adopted a significantly bearish outlook on Roku. A review of the options trading history for Roku (NASDAQ: ROKU) has revealed a total of 22 notable trades occurring recently.

Upon examining the details of these trades, it is noted that only 36% of investors entered bullish trades, while a larger 45% took a bearish stance. Breaking it down further, there were a total of 12 put options traded, amounting to $457,995, compared to 10 call options traded for a total of $642,440.

Projected Price Targets

By analyzing trading volumes alongside open interest, it becomes evident that significant market movers are eyeing a price range between $60.00 and $100.00 for Roku over the past three months. This range suggests where investors expect Roku's stock price to settle in the near future.

Volume & Open Interest Development

Monitoring volume and open interest provides crucial insights for anyone engaged in options trading. These metrics help gauge the liquidity and interest surrounding Roku's options at specific strike prices. The following section delves into the trends observed in the volume and open interest for both call and put options related to recent whale trades within the targeted price range of $60.00 to $100.00, focusing on the last 30 days.

Roku Option Activity Analysis: Last 30 Days

In reviewing the most significant options trades recently spotted, we can summarize the top activities in the table below:

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Expiration Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
ROKU	CALL	SWEEP	BEARISH	01/15/27	$25.00	$25.00	$25.00	$75.00	$250.0K	126	100
ROKU	CALL	SWEEP	BULLISH	11/15/24	$7.10	$7.05	$7.10	$72.00	$94.4K	3	9
ROKU	PUT	TRADE	BULLISH	11/15/24	$9.40	$9.35	$9.35	$80.00	$74.8K	772	80
ROKU	CALL	SWEEP	BULLISH	11/15/24	$7.20	$7.15	$7.15	$72.00	$71.5K	3	340
ROKU	CALL	SWEEP	BULLISH	01/15/27	$31.40	$30.90	$31.40	$60.00	$53.3K	2	17

About Roku

Roku provides a platform that enables users to stream television content. The company boasts over 80 million streaming households and facilitated more than 100 billion streaming hours in 2023. As one of the leading streaming operating systems in the United States, Roku reaches a significant portion of broadband households. Roku's operating system is integrated into both its own streaming devices and televisions, as well as connected TVs from other manufacturers that utilize Roku’s technology. The Roku Channel also serves as a free, ad-supported streaming platform, offering live and on-demand television content. Roku's revenue primarily derives from device sales, licensing agreements, and advertising, along with fees from subscription services accessible through Roku.

With a comprehensive review of the options trading data surrounding Roku completed, it is essential to look closely at the current state of the company.

Current Market Standing of Roku

• Roku’s trading volume is currently at 1,693,960, and its stock price is up by 0.54%, sitting at $73.90.
• According to Relative Strength Index (RSI) indicators, the stock is positioned in a neutral range, teetering between overbought and oversold conditions.
• Roku’s earnings announcement is expected within the next six days.

Expert Opinions on Roku

In recent weeks, five analysts have provided ratings on Roku, resulting in an average target price of $86.80. An analyst from Baird maintains a Neutral rating, citing a price target of $75. Similarly, JP Morgan holds an Overweight rating with a target price of $92. However, an analyst from Needham has chosen to downgrade their outlook to Buy, with a price target of $100. B of A Securities consistently retains a Buy rating with a target of $90, while Citigroup maintains a Neutral rating with a price target of $77.

Trading in options can carry higher risks, yet it also presents opportunities for significant profits. Knowledgeable traders often manage these risks by pursuing continued education, making strategic adjustments to their trades, using various indicators, and keeping a keen awareness of overall market trends. For the latest updates on Roku's options trades, it is advisable to stay engaged with real-time alerts and market data.

Roku, Options, Trading