Roblox has caught some attention after reports showed Nancy Pelosi (greatest trader of all time ;) ) purchased JAN 23 $100 Call options back in DEC.
I like it because it appears to have completed it's downtrend , although not yet confirmed, since closing the NOV gap and putting in a higher low so far.
With heavy resistance at $95, bulls aren't out the woods yet... lot of supply above.
Technically there is major BULLISH divergence on the CMF indicator implying smart money is buying the dip. With a decent VP void above an idea would be :
SHORT TERM - trade up to the $95 resistance LONG TERM - Follow the Trade Guru Pelosi and go Long leaps JAN $100 Calls, then sell shorter term calls against it on the up days (diagonal spread)
Fundamentally their revenue is projected to grow to almost 5B in 2024 and the average analyst PT of 11 analysts is $117 a share (well above the current price of $89 a share).
@jhflack, Might have been a little early on this one, but with MSFT buyout of ATVI, I think RBLX is a great stock in the longer term. Short term, I was wrong on timing..
SquishTrade
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@FriscoTrades, I agree about the longer term. Sure this was early, but I understand eagerness to find a reversal in some top tech firms. I was doing the same with UPST but went in too early for sure. In any case, you did recognize that there was lots of supply above, and "heavy resistance." And your chart captures the downtrend. With what has been happening in growth stocks and tech due to change in Fed policy lately, it's no surprise that even the best tech stocks are getting pummeled. (I too like RBLX, and have it on a key watchlist, but I want to wait until tech / growth are back in the clear. It could be a while I think . . . )
FriscoTrades
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@jhflack, wow thanks ! great feedback I appreciate that
TORNADOF5
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nice , my teach just gave PVG to all our guys , i hope she fly up today ...