Roku Inc (ROKU)

He does not own this as it is pretty expensive here. It is a $17 billion market cap, but only makes $1 billion per year. They are on the hardware side of video streaming services. They are benefiting from the increase in content that is being streamed, especially Disney. Consumers are demanding quality content and this will benefit.

He follows the streaming space closely. Roku is unique because it has several thousand apps connected to it--it's a conduit, unlike, say, Netflix. Roku is attractive not for conservative investors.

He thinks they got hit by the news of Apple TV's aggressive price offering. They are a strong player, but they are competing against the giants in the space (Amazon, Google, Apple, etc.), who can spend them into oblivion. They will not win a price war against these ones. Stay away.

No one expected Apple+ to cost $5/month. Roku is an open platform, not tied to a particular service; they're in a weird place as this streaming battle continues. This will continue to fall.

ROKU-Q vs. TTD-Q. The movements happen about the same time. You are getting a little bit of euphoria there. Both charts are going up and to the right. TTD-Q is coming off a bit. He would not worry about the difference between the two.

The options on this are some of the most expensive in the U.S. market, though lately the stock has stabilized. If you have made more 100% profit, then take half of it in profits and ride the rest of it out. An interesting company considered an up-and-comer. It's a volatile stock, so beware.

Sell April 35 Puts. This stock has had a huge run. It is hard to look at much of a technical picture, because it hasn't been around that long. If he could buy it at $35, he thinks he would. He is going to get paid over $3 a share today for the right to somebody to sell it back to him at $35.

Video streaming. IPO’d at $14 a share and is currently at about $25.50. If you do the work, investigate the company and look at the end market you can get a very high hit rate on IPOs and do extremely well. At this point, he would say there is going to be significant turnover with a lot of people chasing it, and you are cruising in the $24-$28 range now. With that, there is going to be a lot of investor churn. There is a lot of head and tail winds mixing around. This is a point when his practice would be to step away. You are taking an outsized risk if they miss anything now.