Dan Nathan Sees Unusual Options Activity In GoPro

On CNBC's Options Action, Dan Nathan spoke about an options trade in GoPro Inc GPRO 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 Inc TWTR traded significantly lower on the event, while Facebook Inc FB 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.