Can Weight Watchers International, Inc., Planet Fitness Inc Prove Doubters Wrong?

Short interest on Weight Watchers International, Inc. (NYSE:WTW) and Planet Fitness Inc (NYSE:PLNT) is sky-high

Dec 31, 2015 at 2:00 PM
facebook X logo linkedin

Last week, we took a look at two health-conscious stocks that could fatten some portfolios in 2016. With New Year's Day just around the bend (and with it, plenty of resolutions for better lifestyle choices), we thought we'd take a look at a couple more related stocks -- namely, Weight Watchers International, Inc. (NYSE:WTW) and Planet Fitness Inc (NYSE:PLNT).

If you follow the markets closely, you know that WTW has been speeding up the charts since Oprah Winfrey agreed to invest in (and endorse) the weight-loss company -- including a massive bull gap yesterday. Today, however, the shares are taking a breather, off 0.3% at $22.98.

That hasn't stopped traders from placing bullish bets. According to Trade-Alert, buy-to-open activity is detected at the weekly 1/8 24.50- and January 2016 25-strike calls. In short, these short-term bettors think WTW will regain its momentum from the past few months, and topple the out-of-the-money strikes by the respective expiration dates.

From a contrarian perspective, Weight Watchers International, Inc. could get an additional lift from a round of short-covering activity. After all, 41.7% of the stock's float is sold short, representing 6.6 days' worth of pent-up buying power, at average volumes.

Shifting gears, PLNT is 2.2% higher at $15.98, but has been locked in a consolidation pattern between $15 and $16 since mid-November. Intraday options volume is extremely light on this stock -- with just 10 calls on the tape so far, and not a single put.

Speaking more broadly, opinions are mixed on PLNT. On the one hand, all nine brokerages covering the shares have designated them a "strong buy," and the consensus 12-month price target of $21.30 stands in all-time-high territory for the Wall Street rookie.

On the other, over one-fifth of the stock's float is sold short, after short interest swelled 42.2% during the past two reporting periods. At Planet Fitness Inc's average daily volumes, it would take nearly two weeks to cover these positions.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI