After pricing at $20, shares of FitBit ($FIT) opened up for trading last Thursday (6/18/15) at $30.40, a 52 percent “pop” from its initial pricing. While the intraday action on the day of the IPO (i.e., once it actually opened) wasn’t the greatest except for those that bought the opening print and played the momentum up towards $32, I was prepared with my levels the following morning.

Below, I’ve shared a clip of my morning game plan from Friday morning in which I highlighted $30-$30.50 as an area I was watching, which was a level that had developed technically on the first day and was also in between the $30.40 opening print. I also noted in the video that if $FIT got above $32, there was a high probability the stock would run up much higher.

As you can see in the chart below, I got long my initial position into $30.50 and added above the highs from Day 1. I’ve been selling on the way up and have since gotten down to a little less than 25 percent of my original size (from my total size after I had added). The last sale I got was $39.70. At this point, I’m watching $40 to the upside and $36-$36.50 as possible support.

$FIT 6.23.15 (5min post)
FIT – Day 1 and 2

 

Please let me know if you have any questions or comments.

Jake

Trade Review – $FIT