GoPro Inc (NASDAQ:GPRO) is off 2.6% this afternoon to trade at $63.72, which puts it on pace for an 18.3% monthly loss. Options traders have reacted to this price movement by targeting puts, which currently outweigh calls 18,000 contracts to 16,000. Against this backdrop, GPRO's 30-day at-the-money implied volatility has popped 3.1% to 63.9%.

The security's most active option is the weekly 1/2 60-strike put, which is seeing a mix of buy-to-open and sell-to-open activity. The buyers are anticipating GPRO will end the week -- when the series expires -- below $60. By contrast, the sellers are wagering on the round-number level to serve as a short-term layer of support.

Taking a step back, GoPro Inc (NASDAQ:GPRO) faces pessimism in several corners of the Street. Two-thirds of covering analysts rate the shares a "hold" or worse. Also, short interest spiked nearly 21% during the latest reporting period, and now represents close to one-quarter of the stock's total float.

For the first time in over two years, Sigma Designs Inc (NASDAQ:SIGM) has eclipsed the $7 mark, gaining 11.4% today to perch at $7.14, thanks to a price-target hike to $8 from $7 from Needham (which also reiterated its "buy" opinion). This jump -- which topped out at a new three-year high of $7.34 -- has sparked heavy activity in the stock's options pits.

Overall options volume is running at 20 times the normal intraday rate for SIGM, and calls have been the bets of choice -- outstripping puts by a 100-to-1 margin. Considerable attention has been focused on the February 7.50 call, where 1,263 contracts are on the tape, most of which appear to have been bought to open. These traders expect SIGM to continue its run higher, finishing above $7.50 by the close on Friday, Feb. 20, when the back-month series expires.

Taking a step back, the stock has really picked up steam in the past two months after grinding lower for a few years. In fact, SIGM has outperformed the broader S&P 500 Index (SPX) by 53.5 percentage points in the past 40 sessions.

On the sentiment front, the two analysts covering Sigma Designs Inc (NASDAQ:SIGM) rate it a "buy." Similarly, the equity's consensus 12-month price target sits at $8.00 -- territory not explored since November 2011.

Applied Materials, Inc. (NASDAQ:AMAT) has stair-stepped higher in 2014, with the stock on pace to notch a 42.4% annual gain. Today, the equity is flirting with breakeven at $25.22, yet option traders are gambling on a rough start to the new year for the shares.

AMAT's intraday put volume is running at twice the average clip, and the security's 30-day at-the-money implied volatility has jumped 5.3% to 29.9%, reflecting a growing demand for short-term options. Indeed, the stock's January 2015 25-strike put is most active, and it looks like traders are buying the contracts to open.

By purchasing to open the at-the-money puts, the buyers expect Applied Materials, Inc. (NASDAQ:AMAT) to breach $25 within the next few weeks -- specifically, on or before expiration on Friday, Jan. 16. However, in order to do that, AMAT would need to give up a perch atop its 10-day moving average, currently located at $25.13. This trendline, along with its 20-day counterpart, has ushered AMAT to 11-year highs over the past few months.

Facebook Inc (NASDAQ:FB) is bucking the broad-market trend higher this afternoon, down 0.3% at $78.96. Over the past few months, the shares have struggled in the $80 area, and after ending last Friday above this round-number level, they've given back 2.3% week-to-date. Nevertheless, options traders today are rolling the dice on a record high early in the new year.

Taking a quick step back, short-term contracts are in high demand, based on FB's 30-day at-the-money implied volatility, which is up 5.7% to 39.5%. Along those lines, call buyers are initiating fresh positions at the stock's January 2015 85-strike call, where nearly 12,500 contracts are on the tape -- making it the social network's most active option. In other words, these bullish bettors expect FB will topple $85 -- putting it in record-high territory -- by the close on Friday, Jan. 16, when front-month contracts expire.

Today's penchant for call buying is by no means unusual. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FB has racked up a call/put volume ratio of 2.72, indicating nearly three calls have been bought to open for every put. What's more, this ratio ranks higher than four-fifths of comparable readings from the past year.

This extreme optimism potentially leaves Facebook Inc (NASDAQ:FB) vulnerable. If the shares continue to struggle around $80, the weaker bullish hands may decide to hit the exits, which could result in additional headwinds.

Civeo Corp (NYSE:CVEO) is trying to come back from yesterday's analyst-exacerbated drubbing, when the shares lost more than half of their value. At last check, the stock was up 3.8% at $4.07 (but remains on the short-sale restricted list). Option traders are responding by targeting calls, with the contracts crossing at 23 times the intraday norm.

Digging deeper, CVEO's most active option is the January 2016 7.50-strike call, where nearly 9,000 contracts are on the tape. However, this isn't the work of option bulls; in fact, the option is seeing some sell-to-open activity, as traders wager on a long-term technical ceiling for the shares. Specifically, the call writers believe the stock will churn below $7.50 through January 2016 options expiration -- despite the fact it was above that level earlier this week.

While the aforementioned traders targeted a long-term strike, now appears to be an opportune time to sell premium on short-term contracts. CVEO's Schaeffer's Volatility Index (SVI) of 115% registers at the top of its annual range, suggesting the stock's front-month options are relatively expensive, from a volatility perspective.

More traditional option skeptics have also swarmed Civeo Corp (NYSE:CVEO) in recent months. During the last 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open more than two CVEO puts for every call.

Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) is extending yesterday's gains, adding 15.1% today to hit $16.00, after providing a promising update on its TKM-PLK1 Phase I/II clinical study. Not surprisingly, bullish speculators have taken notice.

In TKMR's options pits, volume is running at 10 times what's expected around midday, with calls trading at 16 times their normal intraday pace. Moreover, eight of the security's 10 most active options are calls, with the weekly 1/2 13 and January 2015 17 strikes leading the way, with over 400 contracts exchanged for both.

Digging deeper, it appears the contracts are being bought to open. The former group believes TKMR will continue traveling north of the $13 mark through the close this Friday, Jan. 2, when the weekly series expires. Meanwhile, the latter group hopes to see the stock topple the $17 level by the close on Friday, Jan. 16, when front-month contracts cease trading.

Today's price action offers some hope for a stock that has been struggling of late. In the past three months, TKMR has underperformed the broader S&P 500 Index (SPX) by a staggering 46 percentage points, due in part to overheard pressure from its descending 30-day moving average. However, the stock hurdled this key trendline with today's gains, and is poised to close above it for the first time since mid-October.

Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) still has a long way to go if it wants to catch its consensus 12-month price target, however. At $34.80, the figure more than doubles the stock's current level.

Option volume is heavy today on Arrowhead Research Corp (NASDAQ:ARWR), relatively speaking. The under-the-radar stock typically sees fewer than 2,500 calls and puts change hands during an average session -- but already today, more than 1,300 calls and 679 puts have been traded on this biopharmaceutical name.

It's the second straight day of heavier-than-usual option activity for ARWR, as volume jumped to seven times the norm in Tuesday's session. Yesterday's most popular option was the January 2015 8-strike call, with 2,184 contracts exchanged -- many of which were bought to open.

With ARWR off 1.3% at $7.47 this morning, those short-term calls are out of the money by a slim margin. However, the stock traded as high as $8.55 yesterday, bolstered by reports of a possible acquisition offer from Gilead Sciences, Inc. (NASDAQ:GILD).

Yesterday marked the first trip north of $8 for Arrowhead Research Corp (NASDAQ:ARWR) since early October, and it's possible that the sudden interest in short-term 8-strike calls wasn't necessarily bullish. Short interest accounts for 31.5% of the stock's float, so bearish bettors may have been purchasing calls to hedge against a potential buyout-related pop over the next two weeks until expiration.

Among the stocks attracting attention from options traders lately are cybersecurity specialists Check Point Software Technologies Ltd. (NASDAQ:CHKP), FireEye, Inc. (NASDAQ:FEYE), and LifeLock, Inc. (NYSE:LOCK). Below, we'll break down how option buyers are positioning themselves, and how much speculators are willing to pay for their bets on CHKP, FEYE, and LOCK.

• CHKP has had a great year, adding 22.7% year-to-date to perch at $79.11, and notching a fresh 13-year high of $80.82 on Dec. 24 -- possibly helped by media buzz over recent hacking scandals involving both Sony Corp (ADR) (NYSE:SNE) and Microsoft Corporation (NASDAQ:MSFT). Accordingly, sentiment in the stock's options pits is skewed bullishly. Check Point Software Technologies Ltd.'s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 28.19 stands just 7 percentage points away from an annual peak. Meanwhile, short-term options for the stock are currently inexpensive, as its Schaeffer's Volatility Index (SVI) of 18% ranks in the 23rd percentile of all similar readings from the past year.


• Shares of FEYE haven't been so lucky, shedding 25.7% year-to-date to rest at $32.41, including 1.8% yesterday. However, overall sentiment in the equity's options pits is bullish, as FireEye, Inc.'s 10-day ISE/CBOE/PHLX call/put volume ratio of 6.51 ranks in the 88th percentile of its annual range. Though, with over 15% of the stock's float sold short, some of these long calls may have been initiated by short sellers seeking an upside hedge. Whatever the motive, FEYE's short-term options are available for bottom-of-the-barrel prices, as its SVI of 52% ranks in the 13th percentile of all similar readings taken in the past year. Additionally, the stock's Schaeffer's Volatility Scorecard (SVS) of 100 indicates the shares have tended to make outsized moves in past year, relative to what the options market has priced in.


• After selling off early in the year, LOCK has rebounded, and is now up 14.5% year-to-date to perch at $18.79. Overall sentiment in the options pits is bullish, as LifeLock, Inc.'s 10-day ISE/CBOE/PHLX call/put volume ratio of 114.20 registers in the 78th percentile of its annual range. Meanwhile, short-term volatility expectations are fairly modest; 30-day at-the-money implied volatility on LOCK is 44.7%, in the 35th annual percentile.

Boyd Gaming Corporation (NYSE:BYD) has jumped over 7% today to trade at $13.03. As a result, activity in the stock's options pits has picked up considerably, with intraday volume at 53 times normal trading levels. Also, BYD's 30-day at-the-money implied volatility is up 13.2% at 44.2%, showing short-term options are in high demand.

Speculators are taking a mostly bullish stance today, with calls outpacing puts by a 10-to-1 margin. The most popular strike is the February 13 call, where roughly 19,400 contracts have been exchanged -- over 19 times more than any other strike. The majority of these calls crossed at the ask price, hinting at buy-to-open activity.

These speculators expect the security to top the $13 mark -- a level not touched since April before today -- by the close on Friday, Feb. 20, when the back-month series expires.

This interest in BYD calls goes against what's previously been seen in the stock's options pits. Per its Schaeffer's put/call open interest ratio (SOIR) of 1.03, in the 98th annual percentile, short-term speculators have only been more put-skewed 2% of the time in the past year.

Options traders haven't been the only ones unsure of Boyd Gaming Corporation (NYSE:BYD). Of the 10 analysts covering the security, eight rate it a "hold," and one rates it a "sell." However, today's price increase puts BYD even further above its consensus 12-month price target, which sits at $10.44.

SunPower Corporation (NASDAQ:SPWR) is off 1.3% this afternoon to trade at $25.80, bringing its year-to-date deficit beyond 13%. What's more, just overhead (at $26.20) the shares face a level of resistance in the form of their descending 30-day moving average. As such, at least one group of options traders is upping the bearish ante.

Today's most active SPWR strike is the February 23 put, where speculators are initiating long positions. In short, these traders are angling for the underlying to tumble back below $23 by the close on Friday, Feb. 20, when the back-month options expire. The shares briefly breached this level earlier this month -- hitting an annual low of $22.75 -- before bouncing to their current perch.

Today's put buying is business as usual for SunPower Corporation (NASDAQ:SPWR). The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio rests at an annual high of 4.66. In other words, traders have been buying to open SPWR puts over calls at a much faster-than-usual rate in recent weeks -- quite the change from the last time we covered the security.

Whole Foods Market, Inc. (NASDAQ:WFM) finally muscled its way back atop the round-number $50 mark, putting it in territory not seen since early May. At last check, the grocer's shares were 1.6% higher at $50.52. This notable move is being met with plenty of options activity.

Diving right in, the stock's options are crossing at nearly triple the average intraday pace, with calls and puts trading near parity. Short-term strikes are in high demand, as well, per WFM's 30-day at-the-money implied volatility -- up 10.1% at 22.7%.

Specifically, buy-to-open activity appears to be transpiring at the January 2015 49-strike and 46.50-strike puts. In a nutshell, these speculators are aiming for WFM to tumble back below the respective strikes by the close on Friday, Jan. 16, when front-month options expire.

Alternatively, it's possible the put buyers are shareholders attempting to protect themselves against a pullback in the underlying. After all, WFM has rallied sharply over the last two months -- gaining 28.5% since the end of October. During that time span, the equity has outperformed the broader S&P 500 Index (SPX) by roughly 22 percentage points.

No matter their motive, today's put buyers have plenty of company. During the last 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Whole Foods Market, Inc. (NASDAQ:WFM) has racked up a put/call volume ratio of 0.74 -- in the 81st percentile of its annual range.

Herbalife Ltd. (NYSE:HLF) has been hovering around $38 for the past couple of weeks, and is currently perched at $38.45. That's a far cry from where the stock started the year, with the shares losing more than half their value in 2014. In yesterday's options trading, one group of speculators wagered on continued downside through the start of 2015.

Taking a quick step back, HLF puts crossed at a 30% mark-up to the average daily pace on Monday, and outnumbered calls by a nearly 3-to-1 margin. Looking more closely, buy-to-open activity was detected at the February 27.50-strike put -- which was also the equity's most active option. In other words, these bearish bettors are eyeing a move below $27.50 for the shares by the close on Friday, Feb. 20, when the back-month series expires. This represents territory not explored since December 2012.

On the sentiment front, the preference for puts over calls witnessed yesterday is par for the course. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HLF has registered a put/call volume ratio of 2.63. This reading not only indicates close to three puts have been bought to open for every call in recent weeks, but it also stands higher than 77% of all similar metrics from the past year.

Pessimism is by no means limited to the options pits, though. Roughly 39.5% of Herbalife Ltd.'s (NYSE:HLF) float is sold short, which would take nearly four weeks to cover, at average daily trading volumes.