Put Options on ROKU on 3/13/2023

Roku, Inc. (ROKU) operates a TV streaming platform. 

The company operates in two segments, Platform and Devices.

Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The company also provides digital advertising and related services, including the demand-side ad platform and content distribution services, such as subscription and transaction revenue shares; media and entertainment promotional spending services; premium subscriptions services; video and display advertising services; and sells branded channel buttons on remote controls of streaming device.

In addition, it offers billing services; and brand sponsorship and promotions, as well as manufactures, sells, and licenses smart TVs under the Roku TV name. 

On February 15th, ROKU reported a Quarter December 2022 loss of $1.70 per share on revenue of $867.1 million. The consensus estimate was a loss of $1.73 per share on revenue of $803.2 million.  Revenue grew 0.2% on a year-over-year basis. To make matters worse for the company, it had a $480 million in deposits with Silicon Valley Bank. With the failure of the bank, it is most likely that the $480 million is lost, pushing shares lower. 

We will be trading March 31 put options

Last Trade: $59.90

Trading Range: $38.26 to $139.58

Trade Buy 1 March $60.00 Put at $3.90 For a net debit of $3.90 Profit/Loss Analysis Breakeven at $56.10 Maximum profit is unbounded Maximum loss is ($390.00) at strike of $60.00 Closing Summary Sold 1 March $60.00 Put at $0.00

Position closed on 4/9/2023 at price of $0.00 with a -100.00% loss in 26 days.

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