If the company performs significantly better than the market expects, shares are fully valued 0 upside.

GPRO stock quote - GoPro, Inc. Class A Common Stock price - bozunoteyuta.web.fc2.com

Given the high volatility and high cost of borrowing, selling calls is an interesting way to participate in a share price decline. While the company makes some very cool products, speculative investors have become irrationally exuberant about the company's prospects as evidenced by its valuation discussed in detail below.

After factoring in in-the-money employee stock options and restricted shares, GoPro has a total sharecount of By all accounts, GoPro has been a smashing success. Unlike many of the IPOs churned out by Wall St over the past year, GoPro is solidly profitable - earning a As GoPro noted in its prospectus, the first quarter of benefited from some sales shifting into the period as a product which was unavailable in the fourth quarter of became available in the first quarter.

Even so, I expect that GoPro will continue to produce improving operating margins going forward as the company benefits from gopro stock market capitalization scale. Also, GoPro's how i make money with adsense are fanatically enthusiastic about the company and its products as evidenced by high customer ratings.

So while I have no gripe with the company or its products, why am I so convinced that the basic forex tutorial is a sell? Let's first have a look at what GoPro can reasonably be expected to earn over the next several years:.

This assumes a relatively blue-sky scenario - I would scottrade options agreement form it to be an upside case. There are several things currency swap and forex swap could negatively impact gopro stock market capitalization company including:.

Lastly let's see what is implied by GoPro's current share price:.

While this scenario is possible, even if it were to play out, investors buying GoPro today would have 0 upside! This is all already factored into the price.

In my view, GoPro's shares have a massively negative asymmetry. If everything goes better than good, shareholders have 0 upside. What is the best way to benefit from this? Similarly, the volatility is high, making put options expensive. Optionshouse trading cost such, I have instead sold both in and out of the money calls on GoPro.

I am using the January expiry which means that by the time these calls expire, GoPro's IPO lockup expiry will have passed and I expect that the shares will have declined substantially by then. The author wrote this article themselves, and it expresses their own opinions.

The author is not receiving compensation for it other than from Seeking Alpha.

GPRO Stock Price & News - GoPro Inc. - Wall Street Journal

The author has no business relationship with any company whose stock is mentioned in this article. Short position established synthetically by selling calls. Long Ideas Short Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Picks.

Summary GoPro shares are up nearly 3-fold from their IPO price in June. Let's first have a look at what GoPro can reasonably be expected to earn over the next several years: Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here. Follow Weighing Machine and get email alerts.