Call Buyers Active as GoPro, Inc. (GPRO) Collapses

GoPro Inc (GPRO) is on pace for its second big loss in the last two weeks

Digital Content Group
Feb 27, 2015 at 11:20 AM
facebook twitter linkedin

GoPro Inc's (NASDAQ:GPRO) fall from grace is continuing this morning, with the shares down 5.4% at $42.21 -- their largest intraday deficit since Feb. 18. Since reaching a record $98.47 in early October, the stock has plummeted 57% to flirt with six-month lows. Today, however, at least one group of options traders appears to be keeping the faith, despite concerns about competition out of China.

Taking a quick step back, GPRO calls are crossing at a 74% mark-up to the typical intraday rate. Meanwhile, buy-to-open activity may be transpiring at the weekly 3/6 45-strike call, as speculators roll the dice on a rebound by next Friday's close -- when the series expires. The largest trade at the strike consisted of 1,000 contracts, and Trade-Alert indicates it was tied to stock.

Elsewhere on the Street, skepticism is mounting on GoPro Inc (NASDAQ:GPRO). Short interest shot nearly 35% higher during the last two reporting periods, and more than 35% of the equity's float is currently sold short. What's more, eight out of the 13 analysts tracking the shares have doled out a "hold" or worse opinion.




These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners