Trade Details: Bought to open 10 Sep 2nd Fitbit Inc. (NYSE:FIT) 14.5 calls for $0.55, $560.36 total cost (53.4% of account), 5 days to go. The trade executed at 15:50:53 when the stock was approximately $14.93.
Potential: Unlimited, but won't hold the options for more than a couple of days. Targeting the $15.45 - $15.50 level to exit the trade around $1.00. An exit is prudent if momentum is lackluster tomorrow.
Thesis: This is a purely technical call. The 9-hour moving average crossing the 21-hour moving average has triggered fast moves higher in recent weeks. While trading was volatile today, and a large seller presented herself at the 15 level, volume was strong after this morning's Product Launch Event. Core technical indicators (MACD, Stochastics, Momentum and RSI) add confidence here. Further, the markets showed strength and stability today, and tomorrow's read on consumer confidence may add fuel if FIT moves up.