Roku Stock Could Extend Pullback From Recent Highs

Streaming stock Roku Inc (NASDAQ:ROKU) has pulled back slightly from its April 21, roughly four-year high of $120, last seen down 1.2% to trade at $112.97. Shares could continue lower, however, as indicated by this historically bearish signal now flashing.

Roku stock's 10-day call/put volume ratio of 3.63 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 90% of readings from the past year. This marks the eight time in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, ROKU was lower one month later 62% of the time with an average -5.1% return. 

Furthermore, ROKU is due for a short-term dip, per its 14-day relative strength index (RSI) of 70.6, which sits in "overbought" territory.