What the Options Market Tells Us About Roku

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 8 extraordinary options activities for Roku. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 12% leaning bullish and 87% bearish. Among these notable options, 5 are puts, totaling $639,940, and 3 are calls, amounting to $89,470.

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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 $50.0 to $85.0 for Roku during the past quarter.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Roku's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Roku's significant trades, within a strike price range of $50.0 to $85.0, over the past month.

Roku 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

About Roku

Roku enables consumers to stream television programming. It has more than 90 million streaming households and provided 127 billion streaming hours in 2024. 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.

Following our analysis of the options activities associated with Roku, we pivot to a closer look at the company's own performance.

Where Is Roku Standing Right Now?

• Currently trading with a volume of 405,926, the ROKU's price is down by -1.88%, now at $78.1.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 48 days.

Professional Analyst Ratings for Roku

5 market experts have recently issued ratings for this stock, with a consensus target price of $119.4.

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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. 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 $120. * Maintaining their stance, an analyst from Citigroup continues to hold a Neutral rating for Roku, targeting a price of $103. * An analyst from Citizens Capital Markets has revised its rating downward to Market Outperform, adjusting the price target to $115. * Showing optimism, an analyst from Wells Fargo upgrades its rating to Overweight with a revised price target of $129. * Maintaining their stance, an analyst from Benchmark continues to hold a Buy rating for Roku, targeting a price of $130.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Roku options trades with real-time alerts from Benzinga Pro.