ROKU huge run up from its initial listing in September of 2017. ROKU only made slight profit posted in Feb last year (surprised analyst with 158.54%). The surprise didn't bring much love to the name until the $29.00 pivot. Strong weekly uptrend started back in December of 2018 remains intact so far. Previous weekly pivots where at 52.70 and 58.80 and ATH of 77.57. ROKU is tightly correlated with the QQQ's and likes to ride its tailwinds.
Outlook going into earnings, Bullish IMO: Anticipation and pricing seems that we are going to be looking at a positive earnings report on 2/21. As we have seen good ERs don't always mean more upside action lately, so caution holding through that date is obvious. ROKU has some good tailwinds behind it as the QQQs and SPY remain strong unless the China deal falls through in the near term they should remain strong in the next few weeks. As shown on the 1HR chart ROKU has ran on the top channel of the Bollinger Bands since February last year and poked above a few times. Last week tightening Range on the 1HR, increasing volume into the close on 2/15, makes me feel bullish. Only flag is that the RSI is running a little hot on the 1HR and may slow things down a little into the open. Looking at the OPTIONS chain for Feb. 22nd expiry, the $55.00 strike price has the highest volume at 519 and Open interest at 1832. It appears to me that the masses are betting on the $55.00 and above strike into earnings, lots of premium burn would be to hold bellow that strike (Caution on the 2/22 expiry). On the positive side the 5, 8, and 13 MAs are all underneath including the middle BB for support and we have support (S1) at $51.54 as well. With one eye on the QQQ my play for this name would be to zoom in on the 5M watch for increasing volume at the open and once the algos work out the direction snatch some $55.00 strike 3/8 expiry Calls, especially if we back down to $51.65 price and bounce. At that point there will be some panicking and prices for the Calls should be low. If we break down further to $50.81 I will stop out, then if we go down any further I would be looking for a bounce play similar to described above. GLTA
Full Disclosure: At the time of this writing I do not have a position in ROKU. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.
Outlook going into earnings, Bullish IMO: Anticipation and pricing seems that we are going to be looking at a positive earnings report on 2/21. As we have seen good ERs don't always mean more upside action lately, so caution holding through that date is obvious. ROKU has some good tailwinds behind it as the QQQs and SPY remain strong unless the China deal falls through in the near term they should remain strong in the next few weeks. As shown on the 1HR chart ROKU has ran on the top channel of the Bollinger Bands since February last year and poked above a few times. Last week tightening Range on the 1HR, increasing volume into the close on 2/15, makes me feel bullish. Only flag is that the RSI is running a little hot on the 1HR and may slow things down a little into the open. Looking at the OPTIONS chain for Feb. 22nd expiry, the $55.00 strike price has the highest volume at 519 and Open interest at 1832. It appears to me that the masses are betting on the $55.00 and above strike into earnings, lots of premium burn would be to hold bellow that strike (Caution on the 2/22 expiry). On the positive side the 5, 8, and 13 MAs are all underneath including the middle BB for support and we have support (S1) at $51.54 as well. With one eye on the QQQ my play for this name would be to zoom in on the 5M watch for increasing volume at the open and once the algos work out the direction snatch some $55.00 strike 3/8 expiry Calls, especially if we back down to $51.65 price and bounce. At that point there will be some panicking and prices for the Calls should be low. If we break down further to $50.81 I will stop out, then if we go down any further I would be looking for a bounce play similar to described above. GLTA
Full Disclosure: At the time of this writing I do not have a position in ROKU. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.