Peloton Stock Pedals Lower Despite Sunny Production Update

The equity is down nearly 30% this year

Deputy Editor
Mar 18, 2021 at 9:43 AM
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Last night, the CEO of Peloton Interactive Inc (NASDAQ: PTON), John Foley, told Bloomberg that the stay-at-home workout staple expanded production capacity by 700% year-over-year, and its supply of exercise bicycles is close to meeting demand. Despite this seemingly upbeat news, PTON was last seen down 1.7% at $105.99 ahead of the opening bell.

We last checked in on Peloton stock after the company announced its entrance into the Australian market, and since then the equity has taken a breather. In fact, PTON is on track for its fourth-consecutive loss. While the security is now down 29% in 2021, its 200-day moving average has so far stepped up as support. 

Short sellers are building their positions. Over the last two reporting periods, short interest rose 26.8%, and the 16.27 million shares sold short already make up 6.4% of the stock's available float.

It looks like PTON's options are even more affordable at the moment. The stock's Schaeffer's Volatility Index (SVI) of 67% sits in the extremely low 10th percentile of its annual range. This means options traders are pricing in relatively low volatility expectations. What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at 82 out of 100, indicating Peloton stock has exceeded volatility expectations during the past year.


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