Options Bears Rush Peloton Stock After Quarterly Miss

Year-over-year, PTON is down more than 91%

Digital Content Manager
Nov 3, 2022 at 11:18 AM
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Peloton Interactive Inc (NASDAQ:PTON) announced worse-than-expected fiscal first-quarter losses of $1.20 earlier today, as well as a revenue miss of $616.50 million. Plus, the company's fiscal second-quarter revenue outlook came in below analysts' estimates after it warned that the current macro-economic environment might keep the company from stopping cash burn during the fiscal year. At last check, PTON is down 2.1% to trade at $8.45.

Today's drop has PTON testing a floor at the $7 level, which has contained several of its pullbacks since late September, while a ceiling at the $10 region has been stifling any of the stock's advances. The 60-day moving average has also been pressuring the shares lower, culminating in a 90.9% year-over-year deficit. 

Options bears are blasting the security today. So far, 49,000 puts have been exchanged, which is five times the intraday average, compared to 32,000 calls. The most popular position is the January 2023 6-strike put, followed by the weekly 11/4 7.50-strike put, with positions being opened at the latter. 

A further unwinding of optimism among short-term options traders could have negative implications for Peloton stock. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.57, which sits higher than just 4% of annual readings, suggesting these traders have rarely been more call-biased.

Meanwhile, short sellers are firmly in control. Short interest is 21.7% higher in the last two reporting periods, and the 41.93 million shares sold short make up 14% of PTON's available float.


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