GoPro Inc (GPRO) Rally Sparks a Rush of Call Activity

GoPro Inc calls are trading at nearly three times the intraday average

by Karee Venema

Published on Nov 18, 2014 at 10:45 AM
Updated on Apr 20, 2015 at 5:32 PM

GoPro Inc (NASDAQ:GPRO) has rallied 3.8% this morning to linger near $84.56, following news the company has upped its secondary share offering. Option traders are responding in kind, scooping up GPRO calls at a rate nearly three times the intraday average.

Drilling down, GPRO's November 85 call has seen the most action, with 2,745 contracts on the tape at last check. The majority of these contracts have changed hands at the ask price, and implied volatility has jumped 4.9 percentage points, hinting at the possibility new positions are being purchased. Amid today's surge, delta on the call has jumped to 0.47 from 0.27 at last night's close, indicating an increased probability the option will be in the money at Friday's close, when the front-month contracts expire.

Looking outside of the options pits reveals not everyone is as upbeat toward a stock that's roughly tripled in value since going public in late June, thanks to a number of big moves to the upside. In fact, roughly 73% of analysts covering the shares maintain a "hold" or "strong sell" suggestion, while the consensus 12-month price target of $81.60 stands at a discount to current trading levels. Should GoPro Inc (NASDAQ:GPRO) continue to outperform, a round of upgrades and/or price-target hikes could help propel the shares higher.


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.