GoPro, Inc. (GPRO) Hit by Option Skeptics

Analysts aren't the only ones betting against GoPro Inc (GPRO)

Digital Content Group
Mar 17, 2015 at 2:06 PM
facebook twitter linkedin

Despite being a long-term technical laggard, GoPro Inc (NASDAQ:GPRO) is once again overcoming broad-market headwinds today, up 3.3% at $40.67. In options land, calls are trading at a slight uptick to their typical rate for this point in the afternoon -- though it seems these contracts aren't all of the bullish variety.

Diving right in, GPRO's most active option is the weekly 4/2 41.50-strike call, where data suggests the majority of the 3,448 contracts on the tape have been sold to open. In other words, these call writers are banking on the $41.50 level to act as a technical ceiling through the close on Friday, April 2, when the weekly series expires. The shares last touched this strike on March 6.

Such skepticism is also reflected within the brokerage crowd. Of the 13 analysts tracking GPRO, eight have dished out a "hold" or worse opinion.

Of course, this shouldn't come as a huge surprise. As alluded to earlier, GoPro Inc (NASDAQ:GPRO) has been a dud on the charts. Since touching a record high of $98.47 in early October, the shares have plummeted 59%.




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