Most Active Weekly Options: GoPro Inc (GPRO)

Traders foresee different short-term trajectories for GoPro Inc


Published on Dec 3, 2014 at 11:27 AM
Updated on Apr 20, 2015 at 5:32 PM

The 20 stocks listed in the table below are the names that have attracted the highest weekly options volume during the past 10 trading days. Those highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is GoPro Inc (NASDAQ:GPRO), where weekly calls and puts are being bought to open.

Most Active Weekly Options Table

As we approach midday, GoPro Inc calls are outpacing puts by a greater than 60% margin. By the numbers, roughly 8,700 calls are on the tape, compared to 5,400 puts. Meanwhile, weekly strikes are being targeted, as eight of the 10 most active GPRO options will expire either this Friday or next.

Leading the way is the weekly 12/5 76-strike call, where 1,241 contracts have been exchanged. The majority have been exchanged at the ask price, implied volatility is soaring, and volume outstrips open interest, suggesting freshly bought bullish bets. In short, these traders think GPRO will retake $76 by week's end, when the options expire.

Also seeing notable activity is the weekly 12/5 71-strike put, which likewise appears to be seeing buy-to-open activity. These speculators are convinced GPRO will breach $71 by Friday's close. At last check, the shares were sitting at $72.85, meaning they'd have to drop more than 2.5% over the next few sessions for these puts to hit in-the-money territory.

This could be unlikely, considering 5,743 contracts are in residence at the out-of-the-money weekly 12/5 71-strike put -- many of which were bought to open, according to data from the major options exchanges. In other words, this level could present a layer of options-related support for GPRO. Accordingly, delta on this put sits at just negative 0.31, giving the contract about a 1-in-3 chance of being in the money at expiration.

Taking a step back, GoPro Inc (NASDAQ:GPRO) has been a resounding success since going public in late June. Since that time, in fact, the shares have surged more than 150%.

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