Peloton Stock Slowed by Wider-Than-Expected Loss

Fitness stock Peloton Interactive Inc (NASDAQ:PTON) is down 13.8% at $6.02, after the company's mixed fiscal third-quarter earnings results. Peloton posted losses of 12 cents per share, wider than the expected losses of 7 cents per share but still up 73% since the same quarter last year. The firm also lifted its 2025 outlook, while revenue of $624 million beat expectations but fell year-over-year. 

Though today's move might look dramatic, it's worth noting that PTON has averaged a 19% post-earnings swing -- regardless of direction -- over the past two years. Before today, $7 -- an area that coincides with its 80-day moving average -- had been keeping a firm lid on gains since late February. Year to date, the equity is down 29.4%.  Another explainer for the double-digit drop today could be the equity's 14-Day Relative Strength Index (RSI), seen yesterday deep in "oversold" territory at 80. 

Options bulls appear to be eyeing PTON on the dip. So far, 65,000 calls have been exchanged in comparison to 8,302 puts, and overall options volume has already hit 2.5 times the average daily amount. The weekly 5/9 6-strike call is the most popular, followed by the June 8 call. 

This call bias is nothing new. Over the past two weeks, according to the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 24,255 calls have changed hands, compared to just 4,447 puts.