Option Bears Pounce On Gogo Inc. (GOGO)

One of Gogo Inc's (GOGO) top executives resigned today

Digital Content Group
Mar 24, 2015 at 1:49 PM
facebook X logo linkedin


A surprise resignation at Gogo Inc (NASDAQ:GOGO) has the stock sitting on a 4.5% deficit this afternoon. As such, traders are displaying a pronounced preference for puts over calls, with the former more than doubling the latter.

Over half of GOGO's put volume today has transpired at the weekly 3/27 20 strike. All indications suggest buy-to-open activity at this in-the-money contract, as speculators wager on an extended slide south of the round-number $20 level through Friday's close, when the series expires. Based on the put's volume-weighted average price (VWAP) of $0.39, at-expiration breakeven on the trade is $19.61 (strike less VWAP).

This bias toward bearish bets over bullish has been observed for some time on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). GOGO's 50-day put/call volume ratio across those exchanges is 0.48, which outstrips 88% of comparable readings from the last year.

Negativity is also evident among short sellers. Over two-fifths of GOGO's float is sold short, which would take nearly two weeks to cover, at the stock's average trading volume.

As alluded to, Gogo Inc (NASDAQ:GOGO) is facing pressure from the resignation of Chief Accounting Officer Thomas McShane. Despite the equity's intraday losses, the shares have still advanced close to 20% year-to-date to perch at $19.77. Should this longer-term uptrend resume, a capitulation among option bears and/or short sellers could provide a boost to GOGO.

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI