GoPro Inc (GPRO) is shrugging off broad-market headwinds, despite hitting an annual low earlier
While the
broader market is getting battered, a number of stocks are bucking the trend. Among them is action camera maker
GoPro Inc (NASDAQ:GPRO). Amid the positive price action, short-term option traders have been wagering on end-of-week gains for the equity.
GPRO was last seen 2.1% higher at $32.96 -- but only after touching an annual low of $30.55 -- helped by news that
development for the company's drone is "on track for the first half of 2016." Today's rally aside, the shares have
surrendered nearly half their value since their most recent closing high of $64.74, on Aug. 10.
Yet, option bulls are piling on the bandwagon this afternoon. GPRO calls are running at 1.4 times the expected intraday rate, with what looks like buy-to-open activity at the weekly 9/25 32, 32.50, 33, and 33.50 strikes. In other words, these traders think the stock will extend its upward momentum through Friday's close, when the
weekly series expires.
This optimism isn't particularly unusual. During the past 20 sessions across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GoPro Inc (NASDAQ:GPRO) has racked up a call/put volume ratio of 1.52 -- with
long calls outnumbering
puts by a roughly 3-to-2 count.