I bought 5 contracts of the Planet Fitness (PLNT) Long Calls.
I’ve been watching PLNT for a while now. It’s been on a very clear uptrend since the beginning of 2016. It started a pullback on August 1st. and dropped for about 2 months. On Oct 8th it hit support and started back up. During it’s pullback the 8 Day Moving Average (The T Line) went south of the 50 Day MA and the 200 Day MA. A few days ago the candlesticks went back north above the 50 Day MA. I feel this is confirmation it will continue moving up.
As usual, when buying options I go out a bit on the Expiration Date. I went with the May 2020 Date. This gives me plenty go protection against Time Decay. And plenty of time for the stock to move up to make some money. I’m hoping to be in this position for about 2 to 3 weeks, and I’d like to make 25% on my $3450 investment.
Buy to Open 5 PLNT 5/15/20 $65.00 C @ $6.90 ($3450)
As soon as I get my new section, Wealth Builder completed I’ll be writing about Planet Fitness.
Successful Trading,
Steve
The Options Coach