3 Surging Tech Stocks Wrapping Up Huge Weeks

GoPro Inc (NASDAQ:GPRO), Fitbit Inc (NYSE:FIT), and Etsy Inc (NASDAQ:ETSY) have had huge weeks

by Josh Selway

Published on Apr 15, 2016 at 1:08 PM
Updated on Jun 24, 2020 at 10:16 AM

While the broader stock market searches for direction, a few high-profile tech stocks are managing strong gains at midday. For instance, GoPro Inc (NASDAQ:GPRO)Fitbit Inc (NYSE:FIT), and Etsy Inc (NASDAQ:ETSY) are all making notable upside moves today. Let's take a closer look at GPRO, FIT, and ETSY to see how options traders are positioning themselves.  

We'll start with GPRO, since the stock has been absolutely on fire this week. With its 2.7% gain today at $14.17, the stock is now up 15% on the week. This price action also has GPRO on pace to top its 20-week moving average for the first time since August. Of course, longer term, the stock has struggled. This afternoon's lift may have something to do with news that Fisher-Price will be integrating GPRO cameras into some of its baby products

Plenty of speculators have been betting bullishly on GPRO. Call options are trading at an accelerated clip once again today, and the April 14 strike is the most popular. Data hints at buy-to-open activity here, meaning last-minute traders may be targeting even more gains from GPRO before front-month options expire at today's close. 

FIT has also had a big week, picking up 19.3%, including today's 5.9% gain to trade at $17.30. In fact, the stock is on track to close above its 80-day moving average for the first time since Nov. 2. 

Amid this technical surge, FIT has also attracted options bulls. Call options are trading at twice the average intraday pace today, with the April 16.50 and weekly 4/22 17 strikes standing as the two most popular . According to Trade-Alert, one trader sold to close 1,000 contracts in the April series and bought to open an identical block at the weekly strike -- rolling her bullish bet up and out another week. 

Lastly, ETSY is up 5% today at $8.88, as the stock takes out its 120-day moving average, which had been pressuring the shares in recent weeks. The stock started the week on a slow note, falling below $8, but has recovered to sport a weekly advance of 7.5%. 

Despite this strong showing, ETSY's intraday options volume remains light, with roughly 120 contracts on the tape. Short-term Etsy Inc (NASDAQ:ETSY) options are attractively priced, though, according to its Schaeffer's Volatility Index (SVI) of 77%, which lands in the 35th percentile of its annual range. 

A final point worth making: Both Fitbit Inc (NYSE:FIT) and GoPro Inc (NASDAQ:GPRO) show elevated short-interest levels, with 16.3% and 32.6% of their respective floats sold short. As such, it's possible some of this week's call buyers have been short sellers seeking upside protection. On the other hand, this also means GPRO and FIT could potentially benefit from a short-squeeze situation that could send the shares higher. 

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