GoPro Inc (GPRO) Valuation: The Options Tell the Story

By Bradford and Andrew Cornell GoPro Inc (GPRO) Valuation: The Options Tell the Story by Bradford Cornell and Andrew Cornell The stock performance of GoPro Inc (NASDAQ:GPRO) has been stunning. Rising from an IPO price of $24 earlier in the year to over $80. All this based on the production of action cameras, a market in which there are few barriers to entry. It seems like a screaming short, but not so fast. There is a problem and it can be seen by looking at the option market. As part of his research on options, Nobel Prize winner Robert Merton derived what has…