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Why GoPro shares could double in the next year

GoPro shares were in free fall Monday, plummeting to an all-time low after Morgan Stanley downgraded the stock to "underweight" from "equal weight" and slashed its price target to $12 from $23. The firm cited inventory issues and slowing consumer drone opportunities for the call.

Morgan Stanley is just the latest in a series of downgrades for the stock. Citigroup and Baird recently lowered their outlooks, with Citi cutting its target to $22 from $75 and Baird reducing its rating to "neutral."

Read MoreTech watch: GoPro

Shares of the camera maker are now down more than 70 percent this year and more than 80 percent from its October 2014 all-time high, but one trader thinks a turnaround may be afoot.

"I think GoPro could double in the next year," Andrew Keene told CNBC's "Trading Nation" on Monday. "Any good news would be positive for the stock."

According to Keene, worries over growing competition and slowing product demand are already baked into the stock, which presents an attractive long-term buying opportunity. "I want to make a countertrend trade using the options market," said the founder of AlphaShark Trading.

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Looking out to January 2017 expiration, Keene purchased the 25/35 call spread for $1.00. This is a bullish strategy where a trader will buy a call and sell a higher strike call of the same expiration to offset the cost. The goal is for the stock to rise to the call you are short, or in this case $35 by January 2017. That's an increase of more than 100 percent over the next year.

"This isn't that much of a stretch considering GoPro was trading at $35 back in September," added Keene.

GoPro fell to an all-time low of $15.90 on Monday before rebounding slightly to end down nearly 10 percent at $17.31.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Brian Sullivan

Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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