Fitbit Stock Touches Record Low After Earnings

Plenty of recent FIT options traders are likely cheering

Managing Editor
Feb 27, 2018 at 10:06 AM
facebook X logo linkedin


Fitbit Inc (NYSE:FIT) stock is getting pummeled today, down 12% to trade at $4.89 -- and just off a new record low of $4.67 -- after the wearable tech maker reported fourth-quarter earnings and revenue short of expectations. The company also issued a disappointing forecast for the current quarter. In response, three brokerage firms issued price-target cuts, including to $5 from $6 at Morgan Stanley, which warned that it "would become further negative on the stock if coming smartwatch launches do not sufficiently improve or differentiate the ecosystem."

FIT stock is on track to post its worst-single day loss since January 2017 -- much to the delight of recent options traders. Data from International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows FIT with a 10-day put/call volume ratio of 0.84, ranking in the 94th percentile of its annual range. This indicates puts have been purchased over calls at a faster-than-usual clip over the past two weeks.

Plenty of short sellers are likely toasting the collapse today, though FIT is on the short-sale restricted list. Short interest increased by 22% during the last two reporting periods, to 38.01 million shares, the highest point since mid-August. This represents a whopping 20% of FIT's total available float.

 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI