Investors Bet On Roblox User Growth Paying Off

Shares of Roblox Corp RBLX climbed more than 3% despite a top- and bottom-line miss. Investor sentiment was boosted by the company’s strong user growth.

On CNBC's "Options Action," Tony Zhang said it was a “rollercoaster day” for Roblox’s stock on Wednesday, which traded nearly 5 times its average daily volume.

There was a buyer of 18,000 of the January 2024 17.5/30/65 calls spread risk reversals at 25 cents per contract on average, Zhang mentioned. Check out other stocks gaining favor in the premarket.

“This is a very long-dated January 2024 bullish view targeting $65 to the upside and committing $31 million in capital to purchase 1.8 million shares if does fall down to that $17.50 put strike,” he said.