Wall Street Blues Hits Rookies Fitbit Inc, Shake Shack Inc

The stock market is getting drilled again this morning, and a number of notable names are headed south. Among them is a pair of Wall Street newcomers -- exercise accessories maker Fitbit Inc (NYSE:FIT) and burger joint Shake Shack Inc (NYSE:SHAK). Here's a look at what's happening to FIT and SHAK on the technical and sentiment fronts.

FIT was last seen 3.7% lower at $39.87, putting it on pace for its first sub-$40 finish since late June. Earlier, in fact, the stock was down as much as 9%. Since topping out at a record $51.90, the shares have been locked in a sharp downtrend, losing 23%.

Nevertheless, option traders today are counting on a bounce for Fitbit Inc (NYSE:FIT). Calls are crossing at double the usual morning rate, and edging out puts. What's more, buy-to-open activity is detected at the in-the-money August 39 and weekly 8/28 36.50-strike calls, suggesting short-term bulls think FIT will rebound by the respective expiration dates, tonight and next Friday evening.

Meanwhile, SHAK has dropped 2% to trade at $49.63. Earlier, the shares hit $46, south of their IPO opening price from late January -- similar to what Twitter Inc (NYSE:TWTR) did yesterday. Since its most recent high of $75.90 earlier this month, SHAK has fallen almost 35%.

Things are quite volatile in the options pits, as evidenced by the stock's 30-day at-the-money implied volatility, which hit its highest level since SHAK options began trading last week. Also, puts are trading 1.6 times the usual intraday rate. Outside of options land, short sellers are likely celebrating Shake Shack Inc's (NYSE:SHAK) recent collapse, with over 41% of the equity's float sold short.