GoPro's Earnings Expected To Produce Fireworks, But For Bulls Or Bears?

Options traders are expecting fireworks from GoPro's stock , after the wearable-camera maker reports third-quarter results following Thursday's closing bell, but they're just not sure if it'll be bulls or bears who are celebrating. An options strategy known as a "straddle," which involves the simultaneous buying of bullish and bearish options with strike prices close to current levels, and expiring Friday, is implying a move of about 12% in the stock, in either direction. That means with the stock currently down 1.5% at $66.88, the price would rise above $74.66, or fall below $59.10, on Friday for those who buy the straddle to start making money. The company is expected to report a third-quarter profit of 8 cents a share and sales of $265.6 million, according to FactSet. The day after second-quarter results, the first for GoPro as a public company, the stock dropped 15% even though earnings and revenue beat forecasts. The stock is currently trading nearly triple the IPO price of $24.

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