Buying ROKU call contracts.

After being bearish on Roku Inc. (ROKU) — and many other unprofitable speculative tech stocks — the group now appears like it could rally significantly.

ROKU is now trading at just 1/4 of its peak value. Short interest is rising. And with a $15 billion market value, the company may wind up being a buyout candidate for a larger media or streaming company.

Buying in-the-money call contracts today gives us a chance to profit if ROKU moves higher and speculative tech stocks rebound. This approach also helps manage risk as these calls will retain some value even if shares continue to decline.