With major tech earnings behind us and today’s consumer price index (CPI) report showing inflation increased at its slowest pace in two years, I am recommending a new position in streaming-media company Roku (ROKU).
This is a stock we have traded successfully numerous times. On April 26, the company reported a smaller-than-expected loss and better-than-expected revenue for the first quarter despite a tough ad market.
ROKU’s option premiums are rich, allowing us to generate a nice chunk of cash by selling a put that is 5.5% out of the money.
Current Stocks Price: $56.11
Action: Sell to open the ROKU May Monthly (5/19) 53 Put for around $0.82. You can go as low as $0.72, but please don’t start there and always use limit orders.