Planet Fitness Stock Muscles Higher After Earnings

PLNT has reclaimed its 200-day trendline today

A big earnings winner this morning is Planet Fitness Inc (NYSE:PLNT), which reported adjusted third-quarter earnings of 36 cents, on par with estimates. Revenue and same-store sales topped expectations though, and the company upped its fiscal year forecast. In response, PLNT is up 12.1% to trade at $70.29 this morning, on track for its best single-session gain in exactly one year.

Today's breakout has Planet Fitness shares reclaiming their 200-day moving average for the first time since early September. PLNT had pulled back from its June 18 record high of $81.75, but found its footing atop the $56 level. The fitness stock now boasts a 30% lead year-to-date.

Short sellers have been piling on, and a quick exit from some of the weaker bearish hands could help PLNT make a run at its record highs. Short interest increased by 20.9% in the most recent reporting period to 4.46 million shares. This accounts for 5.3% of PLNT's total available float, and almost four days' worth of pent-up buying power, at its average pace of trading.

The upbeat report has drawn a flurry of options trading today. In just the first hour of trading, already 2,349 calls have changed hands, 37 times the average intraday amount, and quadruple the number of puts traded. Most of the action is occurring at the November 72.50 and 70-strike calls.