The Trade Plan:
- My plan for the trade is as follows: I want to start a position buying calls on a dip in ROKU below $320 (I also might start a trade higher if ROKU trades above $333 first).
- My stop on the trade is going to be if ROKU closes under $305. If that happens, I will take my loss and wait for it to once again set up above the hourly levels.
- On the upside, I think ROKU can reach near $350 which is where I would take all or most of my profits.
The Trade Details:
- Higher-risk “spicy” idea: ROKU Oct 29 2021 $335 Call near $6
- More conservative idea: ROKU Nov 5 2021 $315 Call near $18
ROKU, Inc. (ROKU) - Bullseye Pick of the Week
Original Alert went out on October 18, 2021.
ROKU has been a very hard stock to trade to the long-side lately as it has dropped from a high in the $480’s in late July to a new low of $300 in early October. If you follow my trading, you will know that I love to buy huge previous winners (like ROKU) after they dip, the question is always “when do you step in”?
I like to target both the weekly and daily charts for clues on when that is a good idea. Right now, we are seeing ROKU begin to trade above the daily support levels I look at and the weekly chart is starting to emerge from the 4-week base as well.