Most Unusual Call Option Buys: GoPro Inc (GPRO) and EZchip Semiconductor (EZCH)

Thursday has been a crazy busy day for unusual options trades, especially the calls.  Two of the more interesting ones for us have been unusual call buys in GoPro Inc (GPRO) and EZchip Semiconductor (EZCH).

First up was a quick money making trade in GoPro Inc (GPRO).   A savvy (insider?) trader bought 1,000  September $49 calls just after 11 am today.  They paid $1.45 for those calls, all at the ask.  And surprise, surprise!  The stock took off for the holiday races, though the options are still only 1.40 to 1.70.  This short term call bet had a value of over $150,000.  The September $48 GPRO calls are also seeing action with volume in those almost 1300.

GoPro Inc (GPRO) is currently trading at $48.42 up $2.92 today, and trading down from it’s high earlier today of $48.92.  GPRO has a 52 week high of $49.90, and a low of $28.65 on the year.  It’s trading well above normal average volume with 5 Million shares trading by 12:40 pm today.

The buzz on the street is that GPRO is expecting stellar holiday sales.  We call BS on that buzz.  This trader knows a lot more than the average douche on the street.  Unfortunately we were disconnected from the internet and missed the boat on this one. This ship has likely sailed for now.

gopro inc logoThe second interesting trade was earlier this morning in EZchip Semiconductor (EZCH).  Speaking of insider knowledge, a trader bought about 2,000 October $25 calls in EZCH around 10:30 this morning for $2.05.  There have been over 2400 traded now thanks to some small time copycat traders (like us).  There has also been some big action in the Sept $28 calls with over 1800 traded, last at 95 cents.  Of course, those EZCH $25 calls are up over $3.00 now.

The big buzz here is that the company has cancelled several upcoming conferences.  What does that mean?  We have no idea. Could be a buyout is coming, could be they are going out of business.  You’ll have to ask the call buyer for the real reason, because as usual in the US markets, the insiders and friends and family plan always know best.

We’re just bitter we missed these two great options plays in EZchip Semiconductor (EZCH) and GoPro Inc (GPRO) while we were out of the office.



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