Option Traders Waste No Time As GoPro Inc (GPRO) Hits New Lows

GoPro Inc (NASDAQ:GPRO) has dropped to another annual low, sparking accelerated options activity

Sep 11, 2015 at 2:05 PM
facebook twitter linkedin

It's been an ugly week for GoPro Inc (NASDAQ:GPRO). Today alone, the shares have fallen 5.6% to $31.98, earlier touching an annual low of $31.32. Amid this price action, option traders are rushing in once again, with both put and call volume running at twice the expected intraday amount. 

On a closer look, six of GPRO's 10 most active contracts today belong to the weekly 9/11 series. The top two spots go to the 32- and 33-strike calls, which have seen a mix of seller- and buyer-driven action ahead of expiration tonight. 

Outside of the weekly series, it looks like bulls are buying to open the October 30 call, betting on GPRO to find round-number support in the short term. Bears, meanwhile, are apparently buying to open the weekly 10/23 30-strike put, which will move into the money if GPRO breaches $30 -- and hits lower lows -- by expiration on Friday, Oct. 23. 

Although intraday call volume has outpaced put volume today, the stock's options traders have been upping the bearish ante of late. GPRO's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.74 outranks over two-thirds of other readings from the past year. In layman's terms: puts have been bought to open over calls at a faster-than-usual rate. 

On the Street, however, most analysts are positioned in the bulls' corner. Of the 14 brokerage firms covering the shares, 10 consider them a "buy" or better. Also, GPRO's average 12-month price target of $71.71 stands at more than double current levels. 

Considering GoPro Inc (NASDAQ:GPRO) has been in free-fall recently -- the stock has surrendered nearly one-third of its value in September thus far -- the equity's 14-day Relative Strength Index (RSI) has fallen deep in oversold territory. 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners