CNBC Options Action's Mike Khouw said on the show that he wants to take a long position in GoPro Inc (NASDAQ: GPRO) and he wants to use options to do so.
He explained that the stock is trading at 10 times sales and it has a market cap of $10 billion. Judging on these parameters it looks expensive, but it has been so volatile that anything is possible. Khouw explained that his trade is not based on a historical performance of the stock because there is only a couple of months of data. It is all about the future of GoPro Inc's business.
The simple way to make a bullish bet in this name is to buy the January 82.5 call option for $6.70. The breakeven for this trade is at $89.20 and it is very important to use limit orders because the bid ask spread is really wide.
Posted-In: Mike Khouw Options ActionCNBC Options Markets Media Trading Ideas
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