Public trading strategy
Fox buys Roku for $22 billion to build a streaming giant — ride the acquisition
Thesis
When a big acquisition is announced, the target company's stock usually jumps close to the agreed-upon buyout price, while the buyer's stock sometimes dips on concerns about the cost. Because Roku's platform has over 100 million subscribers and heavily boosts Fox's streaming reach, the combined company is expected to grow much faster. Fox's stock could climb as investors realize how powerful this new streaming combination is against competitors.
Strategy approach
Build a rule-based strategy that enters long FOXA on H4 when price is within 2% of the 20-day simple moving average and RSI(14) < 65, with a 21-day max hold and a 5% trailing stop.