Roku's Options: A Look at What the Big Money is Thinking

Author: Benzinga Insights | April 25, 2024 01:15pm

Investors with a lot of money to spend have taken a bearish stance on Roku (NASDAQ: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 31% bullish and 50%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $215,910, and 12 are calls, for a total amount of $611,602.

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 $45.0 to $105.0 for Roku during the past quarter.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Roku options trades today is 1021.5 with a total volume of 3,012.00.

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 $45.0 to $105.0 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	CALL	SWEEP	BEARISH	10/18/24	$7.0	$6.85	$6.9	$75.00	$119.4K	198	214
ROKU	CALL	SWEEP	NEUTRAL	04/26/24	$3.95	$3.9	$3.95	$61.00	$115.0K	1.3K	664
ROKU	PUT	TRADE	BEARISH	05/03/24	$5.0	$4.8	$4.95	$62.00	$82.1K	337	5
ROKU	PUT	SWEEP	BEARISH	05/03/24	$5.15	$4.95	$5.0	$62.00	$74.0K	337	171
ROKU	CALL	TRADE	BULLISH	05/17/24	$5.75	$5.65	$5.73	$61.00	$57.3K	114	142

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.

In light of the recent options history for Roku, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Roku's Current Market Status

• With a trading volume of 2,303,041, the price of ROKU is up by 1.08%, reaching $62.5.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 0 days from now.

Expert Opinions on Roku

In the last month, 4 experts released ratings on this stock with an average target price of $75.0.

• An analyst from Wedbush has decided to maintain their Outperform rating on Roku, which currently sits at a price target of $80.
• Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $115.
• An analyst from Morgan Stanley has decided to maintain their Underweight rating on Roku, which currently sits at a price target of $60.
• An analyst from Wells Fargo persists with their Underweight rating on Roku, maintaining a target price of $45.

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.

Posted In: ROKU