Looking At Roku's Recent Unusual Options Activity

Investors with a lot of money to spend have taken a bullish stance on Roku ROKU.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ROKU, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 16 uncommon options trades for Roku.

This isn't normal.

The overall sentiment of these big-money traders is split between 68% bullish and 31%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $566,557, and 8 are calls, for a total amount of $297,968.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $40.0 to $105.0 for Roku over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Roku's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Roku's whale activity within a strike price range from $40.0 to $105.0 in the last 30 days.

Roku Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About Roku

Roku is the leading streaming platform in the U.S. by hours watched with 87.4 billion hours of content streamed in 2022. The firm's namesake operating system is used not only in Roku's own hardware but in cobranded TVs and soundbars from manufacturers like TCL, Onn, and Hisense. Roku generates revenue from advertising, distribution fees, hardware sales, OS licensing, and subscription sales.

After a thorough review of the options trading surrounding Roku, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Roku

• Trading volume stands at 2,732,260, with ROKU's price up by 1.97%, positioned at $64.31.
• RSI indicators show the stock to be may be oversold.
• Earnings announcement expected in 47 days.

Professional Analyst Ratings for Roku

5 market experts have recently issued ratings for this stock, with a consensus target price of $101.2.

• An analyst from Wells Fargo has revised its rating downward to Underweight, adjusting the price target to $51.
• An analyst from Susquehanna persists with their Positive rating on Roku, maintaining a target price of $110.
• An analyst from Wedbush has revised its rating downward to Outperform, adjusting the price target to $120.
• In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $120.
• In a cautious move, an analyst from Stephens & Co. downgraded its rating to Overweight, setting a price target of $105.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Roku with Benzinga Pro for real-time alerts.