Planet Fitness Stock Ready to Rise After Lofty Bull Note

PLNT has added 16% this quarter alone, and could reclaim a key level today

Deputy Editor
Jun 24, 2024 at 9:02 AM
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The shares of Planet Fitness Inc (NYSE:PLNT) are up 3.1% before the bell, after TD Cowen upgraded the recreation stock to "buy" from "hold" and raised its price target to $92 from $66. The analyst in coverage called PLNT a "top pick" and an "early turnaround play," saying its catalyst path is hard to ignore and pointed towards the upside to valuation.

Fresh off its fifth-straight weekly gain, Planet Fitness stock is set to make a run at its Jan. 8 annual high of $75.86. Prior to the open, PLNT is up 16.1% this quarter, and now poised to reclaim its year-to-date breakeven level with a solid win today.

This bull note could cause a sentiment shift in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.35 puts have been bought for every call in the last 10 weeks. This ratio ranks in the 76th percentile of its annual range, showing puts being picked up at a faster-than-usual rate during this time.

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 25%, which sits in the 5th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at an 85 out of 100, meaning PLNT exceeded option traders' volatility expectations during the past year.

 

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