Schaeffer's Top Stock Picks for '25

GoPro, Inc. (GPRO) Option Traders Eye a $50 Ceiling

GoPro Inc (GPRO) options are hot amid the stock's descent

Feb 18, 2015 at 1:03 PM
facebook X logo linkedin


GoPro Inc (NASDAQ:GPRO) is down 7.8% at $46.96, on what some speculate is post-lockup selling. Whatever the catalyst, GPRO options are crossing the tape at twice the average midday clip, with speculators taking a shine to options expiring at the end of this week.

Nine of the 10 most active GPRO options expire at Friday's close. Digging deeper, it looks like some traders are employing both puts and calls to place neutral-to-bearish bets on the stock's short-term trajectory.

"Vanilla" bears are buying to open the February 42 and 50 puts. Buyers of the former are hoping GPRO breaches $42 -- in territory not charted since August -- by Friday's close, when the options expire. Buyers of the latter are less aggressive, and hope GPRO extends its retreat south of $50 through the end of the week.

Meanwhile, data from the International Securities Exchange (ISE) suggests some speculators are selling to open the February 50 call. The traders will pocket the entire net credit -- which represents the maximum potential reward -- as long as GPRO stays beneath the mid-century mark through Friday's close.

GoPro Inc (NASDAQ:GPRO) finished yesterday atop $50 for the first time since Feb. 5, thanks in part to an upbeat analyst note. That feat was obviously short-lived, and today's retreat has GPRO sitting on a year-to-date loss of 25.8%. Still, today's skeptically skewed options activity marks a change of pace for the equity. The stock's 10-day call/put volume ratio on the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 1.74, indicating long calls have been the options of choice during the past two weeks.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?