Paper bought 5,000 GPRO July 11 calls & sold 10,000 July 12 calls for a net debit of .06.
GoPro Inc., trading 11.12 (up .27) with an IV30 of 69.23 and an HV10 of 47.60, has earnings coming up toward the end of July.? A trader executed a 1-by-2 call spread in July.? The trader bought 5,000 of the July 11 calls for .68 and sold 10,000 of the July 12 calls at .31 net paying .06 for the 11-12 call 1 by 2 expiring in July, before earnings.? GPRO has an ADV of 18,500 and an OI of 295,000 contracts.
This trade is a bet that GRPO might slowly move higher toward $12 without IV exploding in the July contract.? If the trader is wrong, he or she is only risking about $30,000.? The trader runs into trouble if the stock moves too fast and makes a run at 13/share.
The trade is mildly bullish the underlying and bearish volatility in the near term.