Planet Fitness Stock Rallies to New High After Earnings

Put buying picked up before PLNT earnings

Nov 7, 2018 at 2:19 PM
facebook twitter linkedin

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.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners