Fitbit Call Options Fly Across the Tape Ahead of Expiration

September-dated calls are active as the fitness device stock surges on sale rumors

Sep 20, 2019 at 3:09 PM
facebook X logo linkedin

Fitbit Inc (NYSE:FIT) call options are flying across the tape today, with roughly 19,000 contracts exchanged so far -- already almost doubling the stock's average full-day volume of 9,991 contracts, per Trade-Alert. Front-month options expiration is just hours away, and traders are keying in on FIT's soon-to-expire September 4 call, where 6,921 contracts have crossed the tape.

FIT is trading above $4 per share this afternoon for the first time since July 31, just ahead of a brutal post-earnings bear gap. The stock is up 9.4% at $4.02, bolstered by a Reuters report suggesting the company is in talks with Qatalyst Partners regarding a possible sale of the company -- with Google said to be among the rumored potential bidders.

As a result, today's rush of Fitbit call volume is being matched with with surging share volume, as well; the 3.29 million shares traded has FIT on pace for its biggest volume day since at least that Aug. 1 earnings-related plunge. Now, FIT is on track to close above its 80-day moving average for the first time since early April.

A healthy 10.8% of FIT's float is dedicated to short interest, and some of the weaker bearish hands are likely hitting the exits today. If buyout speculation on Fitbit takes root, a full-fledged short-squeeze rally would take 4.9 days to fully play out, at the stock's average daily volume -- although the volume in today's session has been anything but.


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