Could This Stock Double? - InvestingChannel

Could This Stock Double?

Awesome day in markets yesterday. Let’s end the week strong together!

There’s a streaming company (which you very well may be aware of) which has heard buyout whispers this past week. Some traders are betting this stock will DOUBLE as a result!

Ticker Code Ticker Name Ticker Industry Price Change Average Volume (50)*
GNUS Genius Brands International Inc Entertainment -145.88% 87,892,278
XSPA XpresSpa Group Inc Personal Services -13.32% 18,408,915
BA Boeing Co Aerospace & Defense 4.16% 47,952,755
HTZ Hertz Global Holdings Inc Rental & Leasing Services 16.67% 115,868,966
SMTI Sanara Medtech Inc Surgical appliances and supplies 6.67% 2,581
IZEA IZEA Worldwide Inc Internet Content & Information 60.00% 25,048,556
NCLH Norwegian Cruise Line Holdings Ltd Travel Services -1.45% 81,372,383
AAPL Apple Inc. Consumer Electronics 8.36% 33,442,823
ADMP Adamis Pharmaceuticals Corp Drug Manufacturers – Specialty & Generic 16.39% 2,363,367
UONE Urban One Inc Class A Broadcasting 92.00% 2,632,743
LK Luckin Coffee Inc – ADR Restaurants -2.27% 61,340,817
BIOC Biocept Inc Diagnostics & Research 43.16% 26,987,570
NOVN Novan Inc Biotechnology 2.04% 16,370,874
EDSA Edesa Biotech Inc Biotechnology 45.05% 2,036,007
TSLA Tesla Inc Auto Manufacturers 13.90% 12,461,077
SRNE Sorrento Therapeutics Inc Biotechnology 19.58% 53,757,018
ROKU Roku Inc Pay TV 19.45% 11,108,288
INPX Inpixon Software – Application 5.99% 11,830,537
INO Inovio Pharmaceuticals Inc Biotechnology 17.15% 24,751,518
NIO Nio Inc – ADR Auto Manufacturers 16.85% 68,452,249

When a stock receives possible buyout rumors, it usually catches a nice pop to the upside.

Additionally, call option buyers typically make sizeable bullish bets on the stock itself in anticipation of profiting off the underlying security’s possible bounce to the upside as a result of a buyout.

And in the case of Roku (NYSE: ROKU), on Wednesday, Wall Street’s options players came in and bought tens of thousands of contracts worth of ROKU July 17 $240 Calls when buyout rumors started to circulate.

The stock was trading at about $110/share. Bottom line, Wall Street’s deepest pockets took multiple six-figure bets that ROKU stock (which was already $110/share) may DOUBLE in price-per-share if a buyout does indeed take place!

Between buyout rumors and bets that the stock may double in price-per-share, it comes as no surprise that financial professionals are analyzing this stock today!

ROKU Daily Chart

While I love ROKU’s financial catalyst, in the eyes of a technical analyst, the chart is very straight forward.

Shown in white in the chart above is ROKU’s 200-day simple moving average line. This is often referred to as the most powerful resistance or support level on any chart. In today’s case, it’s a support level as ROKU is trading above it.

I’d like to see ROKU dip a little bit, base off its 200-day simple moving average line, and trade a pop to the upside if it happens.

If ROKU breaks its 200-day simple moving average line support, I’ll likely be patient with it, let it find support in the days ahead, and take a potential bullish position.

Yours for TrackStar trading,

Davis Martin
America’s #1 Options Trader

Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.

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