GoPro Inc (GPRO) is moving higher after the company unveiled a new $299 camera
Call buyers are jumping on GoPro Inc (NASDAQ:GPRO), after the company announced the Hero+LCD -- an entry-level touchscreen camera -- will be available for $299 on June 6 (in the U.S.). With GPRO in rally mode, calls are now crossing at almost twice the expected intraday rate, making up nine of the 10 most popular contracts.
Two contracts seeing the most action are the weekly 6/5 58- and 60-strike calls. All signs point to buy-to-open activity, as traders bet on the shares to eclipse the strikes by the close this Friday, when the contracts expire.
Call buying has been the go-to strategy in GPRO's option pits for some time now. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio sits at 3.35. This tells us over three calls have been bought to open for every put during the past 10 weeks.
It's been a solid few months on the charts for GoPro Inc (NASDAQ:GPRO), to say the least. Since touching a 2015 low of $37.13 on March 10, the shares have picked up over 59%, while outperforming the S&P 500 Index (SPX) by almost 35 percentage points in the past three months. GPRO is keeping that momentum with today's news, adding 6.6% to trade at $59.13, and on pace to end atop its 200-day moving average for the first time.