Speculators Eye GoPro Inc (GPRO) Amid Lockup-Induced Pop

GoPro Inc's first lockup period expired today

facebook twitter linkedin

GoPro Inc (NASDAQ:GPRO) was up by as much as 6.9% today -- amid the expiration of the company's first lockup period -- and was last seen 2.9% above breakeven at $59.59. Meanwhile, options volume is running at a 33% mark-up to the typical intraday rate, and the stock's 30-day at-the-money implied volatility has edged 1.5% higher to 72.7%, signaling elevated demand for short-term strikes.

Looking more closely, speculators are taking different paths toward GPRO. On the one hand, it appears option bulls are buying to open the January 2015 60-strike call, hoping the shares will topple the round-number mark by the close on Friday, Jan. 16, when the newly front-month options expire. On the other, shorter-term speculators are initiating long positions at the weekly 12/26 59-strike put, anticipating the stock will breach $59 by this Friday's close, when the series ceases trading.

Taking a step back, over the last month, option buyers have targeted calls over puts by a modest margin. Specifically, GPRO's 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio checks in at 1.22.

On the charts, it's been a volatile past few months for GoPro Inc (NASDAQ:GPRO), which ran to an all-time high of $98.47 in early October, before pulling back in recent months. However, today's gains have the stock primed to close atop its 10-day moving average for the first time since late November.

Daily Chart of GPRO since September 2014 with 10-Day Moving Average


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1