Fox is buying Roku for $22 billion — momentum play on the streaming hardware mak
Thesis
Acquisition deals typically send the target company's stock surging toward the announced buyout price, and Roku is already rallying to a four-year high. The deal signals that traditional media companies are aggressively trying to capture the digital streaming audience, validating Roku's platform value. While the buyout price sets a ceiling, momentum traders often pile into these stocks on the announcement, pushing them up quickly. This trade captures that initial surge of buyer enthusiasm and the broader market's excitement about media consolidation.
Strategy approach
Build a momentum strategy that enters long ROKU on the 1-hour timeframe when price closes above the prior session high with volume > 150% of its 20-day average. Exit if price closes below the 5-day EMA, or hold with a 5% trailing stop.