GoPro, Inc. (GPRO) Puts Popular as Shares Tumble

GoPro Inc (GPRO) hasn't had the best few months on the charts

Digital Content Group
Apr 1, 2015 at 2:18 PM
facebook X logo linkedin

During the past three months, GoPro Inc (NASDAQ:GPRO) has underperformed the S&P 500 Index (SPX) by roughly 36 percentage points. That downtrend is continuing today, with the shares 5.8% lower to trade at $40.91. In GPRO's options pits, put volume is accelerated, with heavy focus on the weekly in-the-money 4/2 41.50-strike put. It appears traders are buying to open the contracts, as they look to profit on a bigger dip in the shares by the time the options expire at tomorrow's close.

Strangely, even as GPRO has continued to slide on the charts, short-term speculators have become more call-skewed. This becomes apparent when looking at the equity's Schaeffer's put/call open interest ratio (SOIR), which currently sits at 0.78 -- near all-time lows. Looking at the chart below, it's clear traders have grown much more call-skewed than normal, at least toward options expiring in three months or less.

Daily Closing Price of GPRO since October 2014 with SOIR

On the other hand, short interest on GPRO is high, with bearish traders shorting 34.3% of the equity's float. There is a chance that the recent rush for calls is due to short sellers looking to hedge their bets against any upside move in GoPro Inc (NASDAQ:GPRO).


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