Public trading strategy
Roku shopping itself for a buyout — buy the rumor for a takeover premium
Thesis
When a company is officially looking for a buyer, its stock usually jumps because investors expect a buyout premium. Potential acquirers have to offer more than the current price to convince shareholders to sell. This creates a short-term floor under the stock.
Strategy approach
Build a news-driven momentum strategy on ROKU. Enter long on 1D if today's gap up > 3% and volume > 1.5x 20-day average volume. Hold for 5 days or exit on a 4% drop from entry.
Markets and timeframes
ROKU1D