GoPro, Inc. (GPRO) Option Bulls Refuse to Throw in the Towel

GoPro Inc (GPRO) call players continue to dominate the equity's options pits

by Karee Venema

Published on Apr 10, 2015 at 2:26 PM
Updated on Jun 24, 2020 at 10:16 AM

GoPro Inc (NASDAQ:GPRO) option traders have shown a distinct preference for calls over puts of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 22,381 calls over the past 10 sessions, versus 9,772 puts -- resulting in a top-heavy call/put volume ratio of 2.29.

It's a similar set-up in today's trading, where calls are crossing the tape at two times what's typically seen at this point in the day, and outpacing puts by a 2-to-1 margin. Most active thus far is GPRO's April 45 call, and it appears some buy-to-open activity is occurring -- a theory echoed by data from the ISE. For those initiating new long positions, the goal is for the security to finish north of the strike at next Friday's close, when front-month options expire.

Technically speaking, GPRO has been a long-term laggard, down 54% since hitting its record peak of $98.47 in early October. Today, the shares are getting a lift from news that Wellington Research unveiled a 12% passive stake in the firm, and at last check, the security was up 3.3% at $45.14.

Regardless of where GPRO settles at the end of next week, today's call buyers can rest easy knowing they paid relatively deflated premium for their front-month options. Specifically, GoPro Inc's (NASDAQ:GPRO) Schaeffer's Volatility Index (SVI) of 45% rests just 5 percentage points above an all-time low.


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