The shares of Roku (ROKU) were last seen down 4.8% to trade at $160.16, while contending with pressure at the 30-day moving average. The security sports a 30.1% deficit already in 2022, and is just off a Jan. 24, roughly two-year low of $139.47. This negative price action comes ahead of Roku’s fourth-quarter earnings report, which is due out after the close tomorrow, Feb. 17.
Daily chart of ROKU since August 2021 with 30-day moving average
Refinitiv Eikon
ROKU closed lower in the session after its earnings report in five of the last eight quarters, including 4% and 7.7% drops in August and November, respectively. Roku stock has averaged a single-session post-earnings move of 7.5% over the past two years, regardless of direction. This time around, the options pits are pricing in a much larger move of 22.5%.
Options traders are unusually bearish ahead of the event, per the stock’s 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 96% of readings from the past year. In other words, puts are being picked up at a quicker-than-usual clip.
What’s more, the security’s Schaeffer’s Volatility Scorecard (SVS) sits at a relatively high 84 out of 100. This means the security has exceeded option traders’ volatility expectations during the past year.
