Fitbit Inc (FIT) Option Bears Active After Apple's Nike Watch Reveal

Option players are betting on lower lows for Fitbit Inc (NYSE:FIT) after yesterday's Apple Inc. (NASDAQ:AAPL) reveal

Sep 8, 2016 at 3:31 PM
facebook twitter linkedin


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.

FIT 090816

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.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners