by Ian Harvey
February 06, 2019
Roku Inc. (NASDAQ: ROKU)
Roku shares shoot higher by more than 12% on Monday due to the announcement that it has hired Mustafa Ozgen to become its newest senior vice president and general manager in charge of account acquisition. And “Mentorship Members” gained potential profits of 208%.
Roku has grown its revenue 39% last quarter, and guiding investors to expect 40% accounts growth when i t reports Q4 earnings.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
…….from……““Mentorship Program” Recommendations
The Details Presented Previously……..
The Los Gatos, California-based TV streaming platform Roku Inc. (NASDAQ: ROKU) had a bad 2018 due to a convergence of headwinds which investors extrapolated to mean slower growth and lower margins going forward. But, Roku's growth isn't slowing.
This is still a huge revenue growth company with a rapidly growing user base that is becoming more and more addicted to streaming content through Roku devices. Margins are also moving higher since revenue growth is coming from the high margin Platform segment. As sentiment normalizes to reality in 2019, highly volatile Roku stock could easily run back to all-time highs.
Prior to yesterday’s trading, shares of the video streaming company had gained 42.12% over the past month. This has outpaced the Consumer Discretionary sector's gain of 14.05% and the S&P 500's gain of 12.44% in that time.
Roku is a fast-growing platform deserving of its high-ish multiple as it has more than 28 million active users. In 2019, Roku looks to build a true content ecosystem - and from a subscriber standpoint, already has surpassed Charter Communications Inc (NASDAQ: CHTR) and trails only AT&T Inc. (NYSE: T) and Comcast Corporation (NASDAQ: CMCSA).
Margins in the platform segment are very attractive and should allow Roku to turn profitable relatively quickly. International markets remain largely untapped.
** OPTION TRADE: Buy ROKU FEB 15 2019 45.000 CALL at approximately $2.00
The Result So Far………
Mustafa Ozgen is leaving his role as the CEO of SmartKem Limited; and has a strong history working in media and electronics.
"Account growth is a top priority for us - both in placing our great Roku devices in the hands of consumers and further scaling our Roku TV licensing business," Anthony Wood, Founder and CEO of Roku, said in a statement. "Mustafa brings a wealth of leadership experience and global TV industry knowledge which makes him well suited to spearhead our mission to make the Roku platform widely used around the world."
ROKU stock was up 10% as late Monday afternoon and is up roughly 39% since the start of the year.
So, for “Mentorship Program Members”, who managed to execute this trade recommended by Stock Options Made Easy, and then exit Monday; a potential profit of 208% was to be made.
Entering the option trade at a cost of $2.05 or less; and the price of the option reaching past the allocated sell mark of $4.00, reaching as high as $6.33 Monday (208%); a tidy profit was made. Therefore, one options contract would provide a profit of $428.00.
ANOTHER WIN FOR THE WEEK!
AS ALWAYS THE DECISION IS YOURS!
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it did not apply in this case. However, during earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been exceptional.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!
Strategies to Consider……
When To Exit A Trade Based On Earnings?.....Read Article
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
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Other Membership Options…….
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