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Bullish Bettors Busy as Fitbit Inc (FIT) Races to Higher Highs

Fitbit Inc (NYSE:FIT) has notched record highs in three consecutive sessions

Jul 15, 2015 at 10:41 AM
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Fitbit Inc (NYSE:FIT) continues to blister up the charts, running 4.2% higher this morning to trade at $47.90. What's more, the stock earlier touched a record peak of $48.65 -- the third straight session in which it's achieved this technical milestone. All told, FIT has surged nearly 140%, relative to its IPO price of $20 from mid-June.

This trend hasn't been lost on option players. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have initiated more than 32,000 long calls compared to roughly 6,000 long puts. Stated differently, speculators have bought to open more than five FIT calls for every put, suggesting they're targeting even higher highs.

It's more of the same today, as calls are changing hands at more than double the expected rate, and three times the pace of puts. By the numbers, 10,000 calls are on the tape, versus about 3,000 puts. Digging deeper, buy-to-open activity may be transpiring at the July 47, 48, 49, and 50 calls, as bullish bettors wager on upside by Friday's close, when the front-month series expires.

Not everyone's a fan of Fitbit Inc (NYSE:FIT), however, Half of the analysts tracking the shares consider them a "hold." Plus, the stock's consensus 12-month price target of $46.11 rests below current trading levels. Should FIT race to even higher highs, these brokerages may be forced to upwardly revise their opinions -- potentially adding more fuel to the equity's fire.
 

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