GoPro Inc (GPRO) Pop Keeps Call Players At the Table

For the second straight day, GoPro Inc (NASDAQ:GPRO) is shrugging off bearish analyst attention to move higher

Oct 20, 2015 at 1:08 PM
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Similar to Monday, GoPro Inc (NASDAQ:GPRO) is once again overcoming bearish analyst attention. The stock has picked up 1.1% to trade at $29.95, even though Citigroup lowered its price target to $75 from $90. (The brokerage firm did, however, maintain its "buy" recommendation.) Call players have taken notice of this technical strength, as GPRO's calls are crossing at twice the average midday pace. 

On a closer look, the equity's weekly 10/23 series is particularly popular today, accounting for eight of the 10 most popular contracts. It appears traders are buying to open the 30-, 30.50-, 31-, 32-, and 33-strike calls in the series, betting on extended gains before the contracts expire by the close this Friday. 

The stock's weekly calls were popular coming into today, too. Over the past two weeks, the weekly 10/23 32-strike call has added more than 5,800 contracts -- the most of any GPRO option. 

And this all makes sense when looking at the information from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Across this trio of exchanges, traders have purchased close to three GPRO calls for every put during the past 10 sessions. The resultant 10-day call/put volume ratio of 2.60 stands higher than four-fifths of all annual readings. 

Everywhere else, however, sentiment has taken a bearish turn on GoPro Inc (NASDAQ:GPRO). For one, short interest shot up by over 70% during the two most recent reporting periods. Similarly, analysts have been turning their backs on the stock. None of this is surprising, given GPRO's 52.6% year-to-date slide. 
 

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