Author: OP Admin

The bullish DailyPlay for Friday, August 7th is Roku (ROKU). ROKU has experienced a 15.03% rally over the past month but recently broke below and retested its 20 D EMA on earnings yesterday. We see this recent pullback as an opportunity to seek a long position in this fast growing segment of the market. 

Fundamental View

• As streaming platforms fight for dominance, ROKU users grow alongside
• 41% growth in users in the past year
• Earnings: N/A

Technical View

• Recent pullback below its 20 D MA provides an attractive risk/reward for a long position
• 1M and 6M turned bullish on July 1st
• Strong relative strength, technical score (10 out of 10)

Bearish – DIS – $116.94

Catch OptionsPlay’s Chief Strategist, Tony Zhang on CNBC, Options Action every Friday at 5:30 PM EST!

Market Outlook:
Markets took a breather this week to await the massive earnings events on Thursday evening. After AAPL, AMZN and FB reported strong numbers, markets reacted positively, but failed to break to new relative highs. This leads us to further our base case that markets will continue to consolidate unless we see a break above $327 and $270 respectively on SPY and QQQ. 

Watch Tony’s DIS Trade Video on CNBC’s Options Action

DIS Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at DIS and the upcoming earnings event next week. Expecting a significant decline in Theme Park, Media & Studio businesses, Disney+ provides the only bright spot, but hardly makes up for the rest. With the very poor relative performance to its sector and negative analyst revisions the past week, suggests a potential miss on earnings. Expecting DIS to guide lower on earnings, Tony is buying an Aug $115/$105 Put Vertical @ $2.90 Debit. As of Friday’s close, these calls were trading for $2.33 Debit. We are adjusting this trade to the Aug $117/$107 Put Vertical after DIS’s strong intraday rally on Friday. 

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. 

The bullish DailyPlay for Thursday, July 30th is Conagra Brands (CAG). CAG has experienced a 11.66% rally over the past month and its 1M and 6m trend turned bullish on June 29th and just broke out above its $37 resistance level with strong relative strength. 

Fundamental View

• Strong demand for packaged and frozen foods drive 34% growth in EBITDA in 2020
• Debt reduction of $725m this quarter while trading at a lower multiple to peers
• Earnings: Sept 24th (57 Days)

Technical View

• Breakout above $37 extends targets to new all-time highs
• Both 1M and 6M trends are bullish
• Very strong relative strength, technical score (9 out of 10)

The bullish DailyPlay for Tuesday, July 28th is the Nasdaq Biotechnology ETF (IBB). IBB has experienced a 0.1% gain over the past month and its 1M trend turned bearish to neutral yesterday as it bounced higher off its $135 support on a pullback.

Fundamental View

• Vaccine hopes continue to drive investments and interest in Pharma
• Bottoms up analysis sees a 12.59% upside for IBB’s holdings. 
• Major biotech earnings reports over the next 2 weeks

Technical View

• Price formed a double bottom at $135 support last week
• 6M trend is bullish and 1M trend turned neutral from bearish yesterday
• Very strong relative strength, technical score (9 out of 10)