Dan Nathan Sees Unusual Options Activity In GoPro

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On
CNBC's Options Action
, Dan Nathan spoke about an options trade in
GoPro IncGPRO
that caught his attention on Monday. Nathan noticed that a trader bought the December 58 straddle for $4.50, which means that the stock should trade above $62.50 or below $53.50 by the December 26 expiration for the trade to be profitable. Nathan also said that the stock traded higher ahead of Tuesday's lockup expiration and added that it is hard to forecast the direction after such events because some companies like
Twitter IncTWTR
traded significantly lower on the event, while
Facebook IncFB
traded higher. Nathan believes that with the increased shares float in
GoPro
, the price of options is going to decrease. He explained that the short interest in the name is high and since it was hard to borrow the stock, traders moved to options market and inflated the price of options.
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: CNBCOptionsMarketsMediaTrading IdeasDan NathanOptions Action
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