We’re not big fans of trading earnings, especially with a $5 billion camera stock just pumped on CNBC with $60 price targets. So, we’re recommending that you sell to close the second half of the GPRO October 43 call right now for up to 82% gains.
Hold the put side of the hedge.
While we may kick ourselves if earnings are good, we have to remember that revenue pressures do exist. This is an over-extended camera stock being mistaken as a media play. It’s not. It’s just a camera stock. Once that’s realized at such toppy valuation, we expect GPRO to come down.
We believe the safest move here is to sell to close the GRPO calls while holding the put. Stay tuned for more.