ROKU
ROKU all out dumpTicker: $ROKU
$ROKU dumped 20% in the last five trading days, all with a lower close than the day prior. Bears are in a great position especially with the help of the overall market weaknesss. A HUGE support ($116.26) is coming possibly on Monday, but definitely this upcoming week.
Break that level and short is going to run with it. If we down to the extremes with 4 hour RSI under 20, I will potentially start scouting for an oversold bounce. I will be extremely picky because of the general market weakness and will monitor the correlation closely.
Change the hourly trend with a higher low, and a high high; as well as break the pattern of the lower high every day pattern and that will be the first indication that a bounce will be playing out.
ROKU Reversal or Pullback 10+ PointsNASDAQ:ROKU
ROKU closed at or near support coinciding with prior reversals/pullbacks. Currently ROKU is on a 5 day steep sell off. The drawn vertical lines show that ROKU reversed on or around the RSI level of 39.35 which is the level it is at currently on now. Volume is has been decending since the major sell-off that started on 2/14 which shows that there may not be enough pressure pushing the stock further down.
ROKU may still sell of a couple of points before reversing.
Things to look out for:
Macro events and a possible continue sell off on the S&P 500
Reaction to the 200 MA that it will need to cross on the daily to go make the 10+point move
OPENING: ROKU MARCH 20TH 110/190 SHORT STRANGLE... for a 6.21 credit.
Metrics:
Max Profit: $621
Max Loss/Buying Power Effect: Undefined/14.17
Credit Received/Buying Power Effect: 43.8%
Delta/Theta: -1.70/23.14
Notes: Earnings in 2 with high implied volatility rank/implied volatility at 76/88. There is call side skew here, which you may want to accommodate via ratio'd strangle or double double if you go defined risk (e.g., the 2 x 105/2 x 110/170/180 for 3.50-ish).
Microsoft Corrects | Bottom Of ChannelGood afternoon traders, If MSFT can hold its correction back into channel we should see some nice positive movement. This move down was mainly due to the JEDI ruling which learned toward Amazon. Quick TA, Please share your opinion, always love to hear!
DotcomJack
(I'm not a financial advisor... blah... blah.. I'm not providing financial advice..
BILL ACKMAN, JOHN PAULSON & SARAH KETTERER UPS STAKE IN VIAC Here's yet more BULLISH news for VIACOMCBS (VIAC)
We feel along with several other large institutional investors that VIAC is DIRT CHEAP!
News Releases..
www.benzinga.com
www.gurufocus.com
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What are you going to do Roku? $ROKUExcellent earnings results, can we see Roku breaking out of this triangle?
If not, we will see a rejection near trendline resistance and can expect more sideway actions for the next few days.
Good buying opportunity if we can break out! Therefore, worth adding to your watchlist.
CHINA VIRUS - A BOOM FOR STREAMING SERVICES! PEOPLE STAYING HOMEWith the China Virus spreading throughout China, it's an absolute BOOM for streaming services.!
We feel these services should see a spike in usage and new members...
ROKU
NETFLIX
VIACOMCBS - ALL ACCESS (Symbol: VIAC)
APPLE+
COMCAST PEACOCK
More people staying home away from the public should be a BOOM for the services mentioned herein,
Our favorite is ViacomCBS - Trading at only 5x forward earning with new streaming services and sports betting rolling out in March
Best of the luck with all your trades!
DISCLAIMER
This website and our posts are for general information only. No information, forward looking statements, or estimations presented herein represent any final determination on investment performance. While the information presented in this website and our posts has been researched and is thought to be reasonable and accurate, any investment is speculative in nature. StockKid, and/or our agents cannot and do not guarantee any rate of return or investment timeline based on the information presented herein.
By reading and reviewing the information contained in this website and our posts, the user acknowledges and agrees that StockKid, and/or our agents do not assume and hereby disclaim any liability to any party for any loss or damage caused by the use of the information contained herein, or errors or omissions in the information contained in this website or our posts, to make any investment decision, whether such errors or omissions result from
negligence, accident or any other cause.
Investors are required to conduct their own investigations, analysis, due diligence, draw their own conclusions, and make their own decisions. Any areas concerning taxes or specific legal or technical questions should be referred to lawyers, accountants, consultants, brokers, or other professionals licensed, qualified or authorized to render such advice.
In no event shall StockKid, and/or our agents be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this website, our posts or any information contained herein. StockKid, and/or our agents specifically disclaim any guarantees, including, but not limited to, stated or implied potential profits, rates of return, or investment timelines discussed or referred to herein.
THE WEEK AHEAD: ROKU EARNINGS; USO, SMH, EWZ, GDXJEARNINGS:
ROKU (64/83) announces earnings on the 13th (Thursday) after market close and looks to be the best play out of earnings announcements occurring next week from a volatility contraction standpoint.
Pictured here is a fairly straightforward short strangle camped out around the 17 delta in the March cycle, paying 5.62 on buying power effect of around 12.50 (45% credit received/effect ratio) on margin. For those looking to define their risk, consider the 90/100/150/160 iron condor, paying 3.37 on buying power effect of 6.63 (50.8% credit received/effect ratio) or some iteration of that where you look to receive one-third the width of the widest wing in credit. There is some call side skew here which you may to consider accommodating via a ratio'd short strangle or a "double double."*
EXCHANGE-TRADED FUNDS WITH EXPIRY IN WHICH AT-THE-MONEY SHORT STRADDLE IS PAYING GREATER THAN 10% OF STOCK PRICE:
XLE (59/22), July
FXI (54/24), August
SMH (51/27), May
USO (48/39), April
XOP (45/36), June
EWW (43/19), September
EWZ (33/27), May
GDXJ (15/27), May
GDX (10/24), June
My general tendency here has been to go with the shortest duration that's paying first (assuming that I'm not already in a play), and then consider longer-dated thereafter. Here, the shortest duration that's paying is in USO (April), followed by SMH, EWZ, and GDXJ (May), and then XOP and GDX (June).
BROAD MARKET FUNDS WITH EXPIRY IN WHICH THE AT-THE-MONEY SHORT STRADDLE IS PAYING GREATER THAN 10% OF STOCK PRICE:
EFA (45/13), December
EEM (42/20), September
QQQ (37/19), September
IWM (34/18), September
SPY (30/15), November
I've been working SPY longer-dated for quite some time now just to have something on in a constant state of theta burn where shorter duration isn't paying. Just for comparison's sake, the EEM September 37/49 is paying 1.14 on a buying power effect of 4.35 (26.2%); the QQQ September 195/257, 5.77 on a buying power effect of 22.94 (25.2%); and the IWM September 142/183, 3.78 on a buying power effect of 16.50 (22.9%) versus the SPY November 280/367, 8.23 on a buying power effect of 33.24 (24.8%).
FUTURES (EXCLUDING CURRENCY/TREASURIES):
/CL (52/40)
/ES (51/16)
/NG (30/39)
/SI (30/18)
/ZC (29/18)
/GC (24/11)
/ZS (15/18)
/ZW (8/37)
VIX/VIX DERIVATIVES:
VIX finished the week at 15.47, with the February, March, and April /VX contracts going for 16.07, 16.27, and 16.70, respectively. The term structure has lost a good deal of the steepness we were enjoying just a few weeks ago when M1-2 contango was at a whopping 19.16% and M4-7 at 6.24% (it's currently 1.25 and 3.45%, respectively) and my tendency would be to probably wait until the February contract drops off to see if a term structure trade is in the offing. They're not exactly paying me huge to go, for example, with an April setup over a March one, with the differential being a scant .43.
* -- E.g., the 2x90/2x95/155/165 iron condor paying 2.91.
Roku ShortI entered a position with Roku 30 shares short @ 126.90
It bounced off 20/50 MA and rejected the both channels (+2)
RSI is trending it had some poor news with FOX and it faded passed previous support it may move lower my target will be the 200 MA (+2)
$118 will be my take profit. My stop loss will be 130.2.
Max loss is $99 USD. 0.099% of Capital
100 Trade Challenge Begins. This is a paper trade.
Capital is 10,000 USD /w 2x margin. Max I can trade is 20,000. FB active with $6282.9 of capital// Roku active with $3807 with remaining of $9910.1 remaining.
This looks like an A Grade trade with 4 + points
2/100
My plan is to exit before earnings.