Option players are betting on lower lows for Fitbit Inc (FIT) after yesterday's Apple Inc. (AAPL) reveal
Apple Inc. (NASDAQ:AAPL) has been dominating headlines since yesterday's product reveal, with mixed reviews on the new products dragging down AAPL itself, as well as athletics retailer Nike Inc (NYSE:NKE), which will be partnering with AAPL on its new Apple Watch -- much to the chagrin of competitor Fitbit Inc (NYSE:FIT). Shares of wearable fitness tracker manufacturer FIT have been struggling today, with the stock currently down 0.8% at $14.68, and options bears are making their move.
In the FIT options pits, the September 14.50 put is the most active option today, with a block of 1,220 contracts bought to open, per data from the International Securities Exchange (ISE). FIT has been testing support at the $14.50 level since mid-August, and the stock's 40-day moving average now sits just a chip-shot below this mark, at $14.40 -- lending another possible layer of support for the shares. These bearish option players are betting that FIT will fall below $14.50 by the time of expiration on Sept. 16, breaking through multiple possible layers of support. Of course, these FIT put buyers could also be shareholders insuring against a break of this recently key support.
Lately, Fitbit Inc (NYSE:FIT) has been running into resistance at the $16 level, which also served to cap the stock's rallies in February and March. Drilling down on the weekly options, the 9/9 16-strike put is the largest open interest position for FIT -- indicating that short-term option buyers believe that the stock will continue to retreat from this technical resistance level, especially given that FIT hasn't managed to close above $16 a single time since its bear gap in early May.
Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.