GoPro (GPRO) Bulls Aren't Sweating the Competition

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

Digital Content Group
Mar 3, 2015 at 1:23 PM
facebook X logo linkedin

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

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI