Why GoPro Inc (GPRO) is Hot -- and Could Grow Hotter

GoPro Inc (NASDAQ:GPRO) is red-hot this morning, after the camera maker received an upgrade to "buy" from "neutral" at Citigroup. At last check, the shares are up 3.4% at $63.78, muscling back into positive year-to-date territory. More impressive yet, since touching an early March low of $37.13, the stock has zoomed almost 72% higher.

Amid this sustained uptrend, option traders have grown bullish. GPRO's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio is 3.12, with long calls more than tripling puts. What's more, this ratio registers above all but 5% of readings taken in the last year.

It's more of the same among the brokerage crowd. Nine of 13 analysts rate GPRO a "buy" or better, with not a single "sell" to be found. Likewise, the stock's consensus 12-month price target of $76.54 stands at a 20% premium to current trading levels.

At the same time, however, 17.3% of GoPro Inc's (NASDAQ:GPRO) float is sold short. In other words, there's still sideline cash available to power the shares higher. In fact, some of the aforementioned call buyers -- especially those focused on out-of-the-money strikes -- may be short sellers hedging against a sharp move to the north.