GNC Holdings Inc (GNC) is a specialty retailer of health products in the U.S. and 54 countries around the world. The company’s stock is currently trading around $55.45 in a 52 week range of $30.92-$55.85. GNC has had a huge run this year, rallying over 66% year to date. Unusual option activity we have seen in GNC today tells us that traders believe there is more upside in store for GNC. Earlier in today’s trading session a trader bought 2,000 GNC Nov 55 calls for $2.75. This would indicate that this trader believes the stock will head higher through November expiration. The daily chart of GNC also supports the case for a long in the stock. GNC is trading well above the Ichimoku cloud and the cloud is upward sloping into the future. All of these factors are lining up for a long position in GNC stock.
Trade: Buying GNC stock at $55.45 with a stop at $51.21
Risk: $4.24 per share
Target #1: $57.60
Target #2: $59.70
Target #3: $63.90
