GoPro Inc (GPRO) Bullish Bets Still Sizzling

GoPro Inc call options are hot among short-term traders

by Andrea Kramer

Published on Dec 24, 2014 at 12:41 PM
Updated on Apr 20, 2015 at 5:32 PM

GoPro Inc (NASDAQ:GPRO) is extending yesterday's rally, up 7.6% at $66.23. What's more, option traders are betting on more upside by the end of the holiday-shortened week, with calls trading at twice the typical intraday rate.

Roughly 48,000 GPRO calls have traded thus far, more than twice the number of puts. Short-term options are once again in focus, with buy-to-open activity detected at the 12/26 63- and 67-strike calls -- the most active so far. By purchasing the calls to open, the buyers expect GPRO to be sitting north of the respective strikes by Friday's close, when the series expires.

In light of GPRO's recent ascent -- the stock is on pace for a weekly gain of roughly 23% -- delta on the 63-strike call has soared to 0.87 from 0.34 at yesterday's close, reflecting the growing odds of the contract staying in the money through expiration. Likewise, delta on the 67-strike call has surged to 0.36 from 0.056 at Tuesday's close.

Technically speaking, GoPro Inc (NASDAQ:GPRO) has more than doubled since its late June debut, and is on pace to finish atop both its 10-day and 20-day moving averages for just the second time since mid-November. Nevertheless, two-thirds of covering analysts maintain "hold" or worse opinions -- leaving the door wide open for potential upgrades, should GPRO extend its recent bounce.

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