GoPro, Inc. (GPRO) Put Traders Busy Ahead of Holiday

GoPro Inc (GPRO) puts are being bought and sold to open today

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Published on Dec 31, 2014 at 3:16 PM
Updated on Jun 24, 2020 at 10:16 AM

GoPro Inc (NASDAQ:GPRO) is off 2.6% this afternoon to trade at $63.72, which puts it on pace for an 18.3% monthly loss. Options traders have reacted to this price movement by targeting puts, which currently outweigh calls 18,000 contracts to 16,000. Against this backdrop, GPRO's 30-day at-the-money implied volatility has popped 3.1% to 63.9%.

The security's most active option is the weekly 1/2 60-strike put, which is seeing a mix of buy-to-open and sell-to-open activity. The buyers are anticipating GPRO will end the week -- when the series expires -- below $60. By contrast, the sellers are wagering on the round-number level to serve as a short-term layer of support.

Taking a step back, GoPro Inc (NASDAQ:GPRO) faces pessimism in several corners of the Street. Two-thirds of covering analysts rate the shares a "hold" or worse. Also, short interest spiked nearly 21% during the latest reporting period, and now represents close to one-quarter of the stock's total float.


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