GoPro (GPRO) Bulls Aren't Sweating the Competition

GoPro Inc (GPRO) is trying to fend off a new rival

by Digital Content Group

Published on Mar 3, 2015 at 1:23 PM
Updated on Aug 5, 2020 at 10:12 AM

Lately, the buzz surrounding GoPro Inc (NASDAQ:GPRO) hasn't been about what it's done, but more about what its competitors are doing. A few weeks ago, Apple Inc.'s (NASDAQ:AAPL) patent news put the camera maker on high alert. In more recent sessions, concerns have arisen that the company could face pressure due to new competition from Xiaomi's Yi Action Camera, which sells for roughly half the price of the GoPro Hero. Regardless, call volume this afternoon is still twice that of put volume in the stock's options pits.

GPRO's most popular option is the weekly 3/6 40-strike call. Buy-to-open activity has been detected here, as traders look to profit on a move above the contract's breakeven price of $41.41 (strike plus volume-weighted average price of $1.41) by the close this Friday, when the weekly series expires.

Traders snatching up GPRO calls is nothing new. During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 2.23 calls for each put. However, short interest rose 27.6% during the latest reporting period, suggesting some of these long calls may have been at the hands of short sellers hedging.

On the charts, the shares have been hurting more than Derek Rose this year. GoPro Inc (NASDAQ:GPRO) ended 2014 at $63.22, and has since lost 37%. Today, though, the equity is 0.3% higher at $40.

Daily Chart of GPRO Since December

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