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Here’s how to quadruple your money with GoPro: Trader

GoPro shares have cratered over the past year, losing 60 percent of the value. But even as the stock slides on Tuesday, one trader thinks the company is set to rally into the holiday season.

Not only did GoPro just release the Hero 5 series of cameras, but "they're also making a strong move into virtual reality, so I like this stock. I like where this is headed in the longer term," Todd Gordon of TradingAnalysis.com said on CNBC's "Trading Nation."

On the weekly chart, Gordon espies an "inverse head and shoulders" pattern. This is a bullish pattern that is supposed to support a rally should a stock break above a given "neckline" level.

"If we can get a continued push, we should be able to move up towards higher levels as we move into the holiday season."


Gordon thinks the stock, currently trading just above $14, will rise to $20 in the months ahead.

In order to play for such a move, Gordon is buying a call spread. Specifically, he purchased the December 15-strike calls and sold the 20-strike calls for a total of $1.40 per share, or $140 per options contract.

If GoPro shares are actually at or above $20 upon December expiration, the call spread will be worth $500 — meaning that Gordon will have nearly quadrupled his money.


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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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