Bulls Rush GoPro, Inc. (GPRO) Amid Ongoing Uptrend

GoPro Inc (NASDAQ:GPRO) call buyers are busy today, as usual

by Alex Eppstein

Published on Jun 5, 2015 at 3:01 PM
Updated on Jun 24, 2020 at 10:16 AM

Options traders have bought to open nearly three GoPro Inc (NASDAQ:GPRO) calls for every put in recent weeks, according to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the stock's 10-day call/put volume ratio across this trio of exchanges is 2.85. 

In today's options pits, calls are outpacing puts by more than 3,000 contracts, and possible buy-to-open activity is transpiring at the June 59 and July 60 calls. The potential front-month call buyers are looking for GPRO to topple $61.18 -- strike plus volume-weighted average price (VWAP) of $2.18 -- at the close on Friday, June 19, when the contracts expire. Meanwhile, the July 60 call buyers think the shares will take out the breakeven mark of $62.85 (strike plus $2.85 VWAP) by the close on Friday, July 17.

This optimism isn't reflected among short sellers. In fact, 23.5% of GoPro Inc's (NASDAQ:GPRO) float is sold short. However, the stock has been in a steady uptrend since hitting an early March low of $37.13 -- last seen 1.1% higher at $59.55. In other words, provided this trajectory continues, GPRO could get an extra boost from short-covering activity. Looking ahead, the company will hold its annual shareholder meeting next Monday, June 8.

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