Roku's Bullish Pattern Right Before Earnings, That Has Never Been Broken

ROKU has only had four earnings releases since going public, but in that short-time, a pattern has emerged that has never been broken.

The return per back-test was 68.4%.

Broadly speaking, this phenomenon of pre-earnings optimism also worked very well during 2007-2008, when the S&P 500 collapsed into the "Great Recession."



Written by Ophir Gottlieb

Disclaimer
The results here are provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation.

Preface
ROKU has only had four earnings releases since going public, but in that short-time, a pattern has emerged that has never been broken.

The Bullish Option Trade Before Earnings in Roku Inc
We will examine a back-test of getting long a two-week, out of the money (30 delta) call option in Roku Inc 5 trading days before earnings and selling the call before the earnings announcement.
Here's the set-up in great clarity; note that the trade closes before earnings, so this trade does not make a bet on the earnings result because ROKU releases earnings after the market closes.



RESULTS
Here are the results over the last one-year in Roku Inc:

The mechanics of the TradeMachine® are that it uses end of day prices for every back-test entry and exit (every trigger). ROKU isn't due to have it's next earnings release until early November, but you can set an alert for 5-trading days before the event, below:

soures : https://seekingalpha.com/article/4206945-micron-earnings-preview-things-certainly-changed

https://www.servicedonline.com/



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