GoPro Inc (GPRO) call buyers are busy today, as usual
Options traders have bought to open nearly three
GoPro Inc (NASDAQ:GPRO) calls for every put in recent weeks, according to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the stock's 10-day call/put volume ratio across this trio of exchanges is 2.85.
In today's options pits, calls are outpacing puts by more than 3,000 contracts, and possible buy-to-open activity is transpiring at the June 59 and July 60 calls. The potential front-month
call buyers are looking for GPRO to topple $61.18 -- strike plus volume-weighted average price (VWAP) of $2.18 -- at the close on Friday, June 19, when the contracts expire. Meanwhile, the July 60 call buyers think the shares will take out the breakeven mark of $62.85 (strike plus $2.85 VWAP) by the close on Friday, July 17.
This optimism isn't reflected among short sellers. In fact, 23.5% of GoPro Inc's (NASDAQ:GPRO) float is sold short. However, the stock has been in a steady uptrend since
hitting an early March low of $37.13 -- last seen 1.1% higher at $59.55. In other words, provided this trajectory continues, GPRO could get an extra boost from short-covering activity. Looking ahead, the company will hold its annual shareholder meeting next Monday, June 8.