ROKU has been a great stock for trading Options over the last couple years. It possesses many of the traits we want to see in a stock as profitable day traders. ( Good volume, good volatility, momentum, and great technicals.)
Day Trading Options Both Calls & Puts – ROKU Has Proved Profitable
Personally, I have had ROKU on my list to watch for short term day trading of options. Beginning In February of 2019 the SafeDay Trading DOT called the ROKU Bull move at $50 and we enjoyed more than a few highly profitable day trades that month. Using the SafeDay Trading DOT multiple trades were identified that proved very profitable to the tune of 30 -100% return in less than an hour over the last 18 months of watching ROKU Options.
On May 2nd of 2020 I had to replace one of my 50-inch trading monitors. I purchased a 4K HD TV that was ROKU ready. Very Impressed! I had made significant money trading ROKU options over time and I had not done a dive into the stock or its technology. After seeing ROKU app in action, I decided to check out ROKU fundamentals to determine if this stock could also fit into my longer-term strategies.
The Future of ROKU Stock
I understand Roku disappointed many investors in late March 2020, when it warned that it sees some near-term challenges to its platform business. ROKU saw higher than normal ad cancellations beginning in mid-March as marketers started pulling back on spending across the industry.
Management stated they expect to produce a loss for 2020 because of CoVid 19, versus the $35.8 million profit they enjoyed in 2019. But that does not mean you cannot make significant money with ROKU in the meantime trading Options.
Following the SDT DOT shows that ROKU could be experiencing a Down Turn, BUT there is good news for ROKU on the horizon.
Watch the SDT DOT for the opportunity to present itself.
Sure, you can get in now and HOLD, but better advice would be to wait for the momentum to present itself and you can ride the wave with no stress.
Presently we are waiting for ROKU to make its next move. I believe ROKU has room to grow and the vision to grow. However, the SafeDay DOT is at this time not signaling a long term buy.
There are good days where you can make significant gains with options. Catch the wave buying calls on the way up and buying puts as ROKU signals a downturn. I am talking about very short-term Option plays buying call options and exiting the trade in a matter of 30 – 90 minutes not days.
How? Simple watch the candles and your indicators, especially the SafeDay Dot to determine your entry points. Remember When The ROKU stock moves up $2 in an hour if you purchased a Call Option in the money during that same time your leverage would be such that it would result in a 50% return on your investment.
On June 1, 2020, the SafeDay DOT signaled an entry for ROKU 110 call option at 11:30 AM for $3.30 and then signaled to get out at 12:30 for $5.30. (60% ROI) The ROKU Stock moved from $110 to $112.60 during that time.
That my friends is called leverage and the beauty of trading options.
The Future brings many reasons to be optimistic about Roku's prospects. Not only are active accounts and action soaring for the company, but the pandemic has created significant shifts throughout the media and advertising industry.
Combined with excellent execution from Roku to capitalize on shifting consumer behavior suggest it is well positioned to emerge as a stronger company when overall ad spending returns to normal.
Significant growth has been enjoyed by Roku, both in active accounts and engagement since mid-March. The company said it saw a 38% year-over-year increase in active accounts in April. They also had an 80% increase in streaming hours, driven by a 30% increase in hours per account. That's a huge acceleration from the first quarter, when it saw a 49% increase in streaming hours.
Marketers have already been slowly migrating their ad budgets from traditional television programming to ROKU like environments.
The current environment with virus concerns and protests should accelerate that shift. Not only is engagement increasing on Roku, regular old school television viewing is down big time.
Roku introduced premium subscriptions in The Roku Channel at the start of last year. Management said it saw “a surge in signups” for premium subscriptions in The Roku Channel.
With most film and television production halted amid the pandemic, the media companies relying heavily on new original content may become relatively less appealing compared to services that favor back catalogs of old content.
Reasons Roku Stock Looks Bright
Those are some of the reasons I see ROKU’s future looking bright for the next 5 + years. At the end of 2019, Roku sketched out its vision of the “streaming decade.” ROKU “While streaming became mainstream in the last decade, it is still a minority of TV viewing,”.
“We have now entered the streaming decade when we believe consumers around the world will choose streaming as their primary way of viewing TV.” management said in a written statement
As ROKU recently captured my attention, I expect Roku to become the Netflix of streaming hardware. We are watching the early years of a thrilling growth story in the making.
I vote ROKU as an excellent stock to place in your growth portfolio, BUT also a significant player for your attention in the Day Trading Options. Both as it moves up with CALL options and as it moves down with PUT Options. Allow SafeDay Trading DOT to show you the way.
Check out www.SafeDayTrading.org today. You can start for FREE!