Option Activity Pops as GoPro, Inc. (GPRO) Gets Smacked By Apple Inc.

GoPro Inc (GPRO) options are trading at a faster-than-usual clip today

Jan 13, 2015 at 1:25 PM
facebook X logo linkedin


GoPro Inc (NASDAQ:GPRO) has plunged 10% today -- and found a place on the short-sale restricted (SSR) list -- on news that Apple Inc. (NASDAQ:AAPL) has been granted a patent for a camera system similar to the one GPRO develops. In GPRO's options pits, volume is trading at 1.8 times the average intraday pace, and short-term contracts are in demand. Specifically, all 10 of GPRO's most active options expire in the next six weeks.

The equity's January 2015 60-strike put has seen the most action, but according to data from the International Securities Exchange (ISE), a number of these positions are being sold to close ahead of Friday's expiration. Looking down the list, GPRO's January 2015 55-strike call has received notable attention, with signs suggesting a mix of buy- and sell-to-open activity.

By buying to open the calls, traders expect GPRO to bounce back above $55 by week's end -- when front-month options expire. Meanwhile, those selling to open the calls are betting on the level to hold as a short-term ceiling.

From a wider sentiment perspective, option bulls have been active on GoPro Inc (NASDAQ:GPRO) in recent weeks, despite the stock being down 48% from its Oct. 7 all-time high of $98.47 to trade at $51.07. At the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.48 calls for every put during the past 10 sessions. With nearly 30% of the equity's float sold short, though, a portion of this call buying may be a result of shorts hedging against any unexpected upside.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI