jay_beckner

I play poker and trade options, seeking edges from study, reflection and analytics.

#001 FIT Call Spread

Trade Details: Bought to open 6 Jul 29th Fitbit Inc. (NYSE:FIT) 12/13 call spread for $0.73, $449.45 total cost (89.9% of account), 5 days to go. The trade executed at 13:17:14 when the stock was approximately $12.85.

Potential: 37.0% before commissions

Thesis: Between Jun 27-30th, the stock held the Feb 2016 lows then made a run to nearly 14 before pulling back into the high 12's. The pullback appeared to be fueled by another wave of negative sentiment related to perceived competition and product litigation. I think this is short-term noise in a long-term positive story. Between Jul 20th and today, the stock successfully tested a new uptrend line from those Jun lows. Recent bullishness, favorable technicals and the stock's tendency to rise into earnings (next week) make this spread attractive.

#001 FIT Call Spread Assigned