It's time to shine for some of the newest entrants to the public markets.
CNBC's "Trading Nation" asked two traders which they're watching most closely.
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"I have my eye on Roblox because Roblox is essentially crack for kids," Danielle Shay, director of options at Simpler Trading, said Friday. "Their business model is a little bit questionable but lucrative. So, I'm looking at this one to the upside."
Roblox, which reports earnings Monday afternoon, is an online gaming platform with user-generated content, free to play but with in-game purchases made with "Robux." It is expected to report $573.1 million in sales in its March-ended quarter, according to FactSet estimates.
"All the hype around it has given the implied volatility quite a rise, which means that options traders could sell some put credit spreads, or some at-the-money condors. We're pricing in about an $8 move either way. If we do get a pullback, I'd be a buyer of the stock," said Shay.
The stock direct listed in March. It closed at $69.50 a share on its first day of trading but has since fallen to $67.90.
While Shay is bullish on Roblox, Piper Sandler chief market technician Craig Johnson is bearish on another recently public stock – Palantir.
"I'm looking at this name specifically because all these software companies have been under a lot of pressure lately," Johnson said during the same interview.
He points to a head-and-shoulders top in the charts, a technical formation that suggests the reversal of a trend and a further push lower.
"Downside in this stock could be down to $10 so it doesn't look like a great risk reward from our perspective, and every single time we've gotten up to that 50-day moving average, we failed, so from my perspective, I'm watching this carefully to the downside," he said.
The data company's stock trades at $19.75 a share. It touched its 50-day moving average at around $24 in late April but moved lower again.
Palantir also went public via a direct listing, in September. Shares closed that session at $9.50.
It reports before the bell Tuesday.
Disclosure: Shay holds RBLX.