Roku (ROKU) closed the last trading session at $98.41, gaining 3.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $125.36 indicates a 27.4% upside potential.The mean estimate comprises 28 short-term price targets with a standard deviation of $17.23. While the lowest estimate of $93.00 indicates a 5.5% decline from the current price level, the most optimistic analyst expects the s ...

Core Viewpoint - Roku Inc's stock has experienced a notable increase following a double upgrade from Morgan Stanley, which raised its rating to "overweight" and increased the price target to $135 from $85, citing multiple growth drivers including faster revenue growth and a positive outlook for the advertising industry [1] Stock Performance - Roku's stock has been on an upward trend since the beginning of the month, potentially surpassing its three-year high of $116.66 set on October 31 [2] - Year-to-date, Roku's equity has risen by 50.1%, although short interest has increased by 28.6% in the last two weeks, now representing 5.8% of the stock's available float [2] - The stock's 14-day relative strength index (RSI) is at 79.9, indicating it is in "overbought" territory, which may suggest a short-term pullback [2] Options Activity - Following the positive analyst note, call options trading has surged, with 2,912 calls exchanged, which is three times the typical volume for this time frame [3] - The December 115 call option is currently the most popular among traders, and options are considered attractively priced with a Schaeffer's Volatility Index (SVI) of 42%, which is in the low 2nd percentile of its annual range [3][4] Volatility Insights - The current SVI of 42% indicates that options are affordably priced, and with a Schaeffer's Volatility Scorecard (SVS) of 12 out of 100, Roku has historically exhibited lower volatility than what its options pricing suggests, making a premium-selling strategy potentially advantageous for options traders [4]