ROKU Earnings

3 sie 2020

ROKU has formed an amazing setup ahead of its ER this week. After a higher run up at the beginning of July, it has consolidated into a great bull flag that looks ready to take off again before and after earnings. Using the length of the flagpole ROKU has a good long term bullish case to reach a new ATH and potential push further towards $195 or even $200. Note that the RSI is slowly reaching that overbought region so it may be due for some further consolidation before hitting those levels. In the meantime, ROKU's ER run up provides a good opportunity to ride the wave up. We know that ROKU can be a fast mover, and I think there is potential for a big single-day gain as it nears earnings, and maybe even after. Remember, however, that playing earnings is even riskier than normal options trading, so be aware of the IV heading into this week.