Deep-pocketed investors have adopted a bearish approach towards Roku ROKU, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in ROKU usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 12 extraordinary options activities for Roku. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 33% leaning bullish and 50% bearish. Among these notable options, 9 are puts, totaling $380,178, and 3 are calls, amounting to $169,794.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $55.0 to $90.0 for Roku during the past quarter.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Roku options trades today is 1238.91 with a total volume of 2,836.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Roku's big money trades within a strike price range of $55.0 to $90.0 over the last 30 days.
Roku Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROKU | PUT | SWEEP | BEARISH | 11/15/24 | $4.85 | $4.75 | $4.85 | $75.00 | $90.7K | 1.2K | 338 |
| ROKU | PUT | SWEEP | BEARISH | 11/15/24 | $10.8 | $10.65 | $10.8 | $85.00 | $73.5K | 94 | 138 |
| ROKU | CALL | SWEEP | BULLISH | 11/15/24 | $2.34 | $2.23 | $2.34 | $90.00 | $69.9K | 314 | 336 |
| ROKU | CALL | SWEEP | BULLISH | 01/17/25 | $7.6 | $7.55 | $7.55 | $80.00 | $66.4K | 1.7K | 117 |
| ROKU | PUT | TRADE | BEARISH | 10/25/24 | $8.3 | $8.05 | $8.3 | $85.00 | $41.5K | 5 | 0 |
About Roku
Roku enables consumers to stream television programming. It has more than 80 million streaming households and provided well over 100 billion streaming hours in 2023. Roku is the top streaming operating system in the US, reaching more than half of broadband households, according to the company. Roku's OS is built into streaming devices and televisions that Roku sells and on connected televisions from other manufacturers that license Roku's name and software. Roku also operates the Roku Channel, a free, ad-supported streaming television platform that offers a mix of on-demand and live television programming. Roku generates revenue primarily from selling devices, licensing, and advertising, and it receives fees from subscription streaming platforms that sell subscriptions through Roku.
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.
Roku's Current Market Status
- With a volume of 2,893,765, the price of ROKU is down -1.85% at $76.92.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 16 days.
Professional Analyst Ratings for Roku
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $86.4.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Roku with a target price of $90. * Consistent in their evaluation, an analyst from Macquarie keeps a Outperform rating on Roku with a target price of $90. * Consistent in their evaluation, an analyst from Baird keeps a Neutral rating on Roku with a target price of $75. * An analyst from Citigroup has decided to maintain their Neutral rating on Roku, which currently sits at a price target of $77. * An analyst from Needham downgraded its action to Buy with a price target of $100.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Roku, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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