Planet Fitness Stock Rallies to New High After Earnings

Put buying picked up before PLNT earnings

Josh Selway
Nov 7, 2018 at 2:19 PM
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Planet Fitness Inc (NYSE:PLNT) is trading up 17.1% at $55.63 after the company's third-quarter earnings and revenue beat, on top of a better-than-expected full-year outlook. Revenue for the period jumped 40% year-over-year, and the impressive results have earned the stock a round of bullish analyst attention. For example, at least three price-target hikes of come through since yesterday's close, two of which -- from Berenberg and D.A. Davidson -- came in at $60.

PLNT shares earlier hit an all-time high of $57.23, adding to what's been an amazing year, going by the 12-month lead of nearly 118%. Given this technical success, it's not surprising most analysts were already bullish, with nine of 13 handing out "strong buy" recommendations and not a single "sell" to be found.

Options traders were split heading into the quarterly event. Starting with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), put buying had been unusually popular. This was based on the equity's 10-day put/call volume ratio of 1.60, which ranks in the 85th annual percentile.

At the same time, overall open interest among contracts expiring within three months revealed a strong preference for calls. More specifically, PLNT's Schaeffer's put/call open interest ratio (SOIR) of 0.20 shows near-term call open interest outweighs put open interest by 5-to-1, and this SOIR sits at an annual low, so such a call-skew is very rare.


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