Peloton call traders are likely cheering the fitness company's encouraging report today
Peloton Interactive Inc (NASDAQ:PTON) announced smaller-than-expected losses of 8 cents per share for the fiscal fourth quarter, in addition to a revenue beat as sales grew for the first time in over two years. The embattled fitness company noted it is now prioritizing profitability and cutting marketing and sales expenses.
Though PTON remains firmly in penny stock territory, it was last seen up 17.4% to trade at $3.95, breaking through overhead pressure from the 60-day moving average as it bounces off its lowest level since May. The stock still carries a 34.8% year-to-date deficit, but is now pacing for its best single-session pop since February 2023.
Options traders have been laser-focused on calls. The security's 50-day call/put volume ratio of 8.09 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 93% of annual reading. This means calls are getting picked up at a quicker-than-usual clip.
Drilling down to today's options activity, 105,000 calls and 10,000 puts were exchanged so far, which is 34 times the intraday average volume. Most active is the September 3.50 call.