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Opportunities Presented by Options on $30.00 Stocks.

Let's start with this chart. It's Pfizer. Would you have expected a pop like this, this morning? Now look at what the Call options did. I don't want to get into a discussion of "Can you read charts" however after one nice rally yesterday and second follow up rally could be expected. The 29.50 series of Calls doubled on a strong opening this morning. "Out-of-the-money" Calls on stocks in the thirty dollar price range call sometimes suprise.
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A Monday Morning Let's Start Off The Week Blog. Roku

Roku. A week when one of it's competitors called Netflix has an earning report coming out.
A five day chart just befoe 10:30 a.m. Monday morning. Roku is in a sideways moving formation. It's chart formation is not very inspiring. Look at these Call options which will expire on Friday.
Here is it's three month chart. Can you see how it is in a waiting game with relatively low volumes of trading?
Now this. A look at the same option series fourteen minutes later. Option traders know that there can sometimes can be a disconnect between what happens on a Monday morning and what happens during the rest of the week.
They still have about thirty hours of trading life left in them. (Netflix was down $15.68 today). Now here is how the 60 series of Calls closed on the day and a chart of how the stock traded.
What is there to make of the high volume of trading coming into the stock on the closing? Not much. Cathie Wood bought 93,186 shares of Roku on this day and ARKW ETTFs with a total dollar of $5,581,841. Yet then again one day after I wrote this blog the trading volume on Roku was 3.4 million shares in one day. When people of perceived investment savoy buy in other people take notice. She is also big on Telsa which has gained ground recently. There is also this news on Roku which came out last month.
Now at look at how Roku traded on Tuesday and it's one and five day chart.
Here are the same Roku Call options again, this time on Tuesday April 16th. What an uphill battle it seems to be facing. Whenever it seems like it wants to go up it is always pulled bck down. That what happwns to sideways moving stocks.
Now a look at Netflix.
Here a five day chart on Netflix as of the close on Tuesday. Up on the day and down more on the previous day. Google Netflix and watch their just released 40 minute video which talks about their business model going forward. Their first quarter's profit report was just released. Listen to how executives who are in a different space, make a good living out of putting a twist on how they stream their data. Will Roku pop this week? It's not looking good right now. Wednesdays are sometimes days of market reverals. Not this time.
Now this. A different look at how these options traded on the day it now looks like these options could expire worthless. Yet a strong opening on Thursday morning could temporarily bring these options back to life. It's 50:50.
Here now on Thursday morning at 11:30 a.m. is the bounce I was mentioning. A high of .43 up from the .21-.28 range. It's not the kind of play most option traders would ever consider.
Now the close on Thursday.
Is this most recent bounce to little to late? Here is what the five day chart now looks like.
Sideway moving stocks can be exhausting to play. Now this news of what a competitor is up to and how it's stock moved on the day.
With all this chatter in the air Roku didn't have a chance of going up on Friday, the final day of watching the April 19th, 60 series of Roku Calls.
Roku and Netflix option players belong to a unique club. *Netflix was down $67.79 on the week and Roku was down $3.00.

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