One of my favorite ways to trade is by fading analyst calls because they’re always so far behind the curve. In fact, I have an entire trading strategy built around going against what analysts say, One Eighty Alerts….
On Monday’s edition of Crush the Open, which you can view at the top of this post, we went over a short idea I really like after Susquehanna analyst Shyam Patil upgraded Roku Inc. (Nasdaq: ROKU) from neutral to a buy, raising his price target to $75 a share.
And when you take a look under the hood on my Bloomberg terminal, Shyam has been neutral on this stock since July 2022 when it was mostly in the $80 range.
Now since the first of this year, ROKU has been on a tear, up over 50% to as high as $65 a share on Monday… The point being, these analysts are always late to the game, and you can do quite well taking the opposite sides of their recommendations.
What suddenly changed about Roku as a company that this analyst is suddenly bullish after the stock is already up 50% this year?
By my estimation, not much… making it a perfect candidate for a short bet.
I’m also growing bearish on the Nasdaq, which has ripped over the past month, up about 6% as of Monday morning, and I don’t like this tape at all.
So at these levels, I like the idea of shorting ROKU and the Nasdaq, and several bank stocks we covered in Monday’s Crush the Open, so be sure to check out the video up top! We also covered a couple of longs and other day trading ideas — plenty of red meat!
Jeff Zananiri
Jeff Zananiri Trading
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. FREE Options Scanner Trading Session
For the first time ever…
Lance Ippolito is debuting his BRAND-NEW OPTIONS SCANNER.
In the last two weeks…
It’s flagged opportunities on FRC, MAT, GOOG, TSLA and dozens more.
So in honor of his NEW scanner…
He’s hosting a 100% FREE trading session…
Anyone who attends can look over his shoulder as he scans the market for hot new trade ideas!
Are you in?
Register for the Live Reveal HERE!
