RBLX Sell-off anticipated in the Options Market !!

16 Şub 2022

Before placing a strangle option on this particular stock, yesterday i was monitoring the options market for a possible outcome.
And it was extremely interesting to see that the high conviction trades were slightly bearish: 5.2K Puts and only 2.3K Calls yesterday.

And guess what happened at the earnings today:

Revenue: $568 million vs $604 million expected

Bookings: $770 million vs $786 million expected

Losses per share: $0.25 vs $0.11 expected

User growth: 49.5 million daily active users vs 50.1 million expected.

So following the "smart money" wasn`t a bad idea after all. :)

Now considering that Ark Invest bought the stock lately, i think it still has potential on the long run (Ark has a 5 year term targets compared to the usual 1 year analysts ratings).