On Monday, GoPro Inc. options went live and for investors?it may bring something they’ve been looking for in the marketplace: volume and volatility, wrote Bloomberg.
This comes after its shares have been actively trading after an almost two-week-old IPO (a June 26 debut). Now with the introduction of its options, many having high expectations for the product–maybe not seen since the highly anticipated Twitter options came to the market.?
Kurt Ayling, a technology, media??and telecom analyst at Susquehanna Financial?Group LLP, recently said to Bloomberg, “The stock is clearly showing a lot of volatility, which?is hard to come by nowadays. It will likely attract?a wide variety of investors, especially given the recent ?outsized moves in the stock.”
Last week, GoPro’s stock rose to $41.58 (16?percent) continuing its rise to 73 percent since going public at?$24. In its first five days, almost 38 million shares traded daily, which represented?the?fifth-highest volume out from 5,000 U.S.-based companies during that time, noted Bloomberg. This puts it in the company of?Apple Inc., Bank of America Corp. and Facebook Inc.
As for the new GoPro options, they’ll have between $35 and $50 strike prices as announced by?CBOE, with a?75,000 contract position limit. Expiration months include July,?August, October and January.
Investors seeking profit opportunities may look to GoPro options after the market’s volatility has been at low levels. Last week, the VIX closed at 10.32, off?8.4 percent to 10.32 for its lowest figures since 2007.
Now with this recently public stock, higher volatility could follow as the “market attempts to pinpoint its proper?valuation,” said Tim Biggam of TradingBlock to Bloomberg. Investors may also look to the options as a?hedge “against outsized moves immediately after a stock starts trading publicly.”
At the time of this writing, GoPro shares are trading at $43.85, up 5.48 percent.?