John123
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John123 in Gainers & Losers,

Focus on volatility ahead of GoPro product launch

Derivatives strategists at JPMorgan view GoPro's (GPRO) upcoming product launches as a high-impact stock moving event and recommend investors load up on volatility

Late in July, GoPro said its newest action camera and its Karma drone are on track for a launch later this year.

More than a fifth of GPRO's outstanding shares are sold short and StarMine Short Squeeze Indicator rank of 93 suggests stock ripe for reaction (100 = most likely to have a short squeeze)

The high level of skepticism could accentuate any upside move in the stock if the Hero5 or Karma product launches are impressive, JPM analyst Bram Kaplan says in a note

JPM recommends investors buy October strangles - an options strategy that bets on volatility

GPRO 30-day ATM implied volatility is in the 14th percentile of its 52-week range, making buying options on it relatively cheap, per Trade Alert data

Looks like a good idea, I am in.