Options Traders Target Peloton Stock on Amazon News

Options volume is running at four times the intraday average

Deputy Editor
Aug 24, 2022 at 3:13 PM
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Peloton Interactive Inc (NASDAQ:PTON) is surging on the charts today, up 20% at $13.44 at last glance.The company said it will sell some of its equipment and accessories through Amazon.com (AMZN), marking a move away from its direct-to-consumer business model. What's more, PTON is one of the top trending stocks on Stocktwits.com after the news. 

Options traders are zoning in on the stock as well. So far, 127,000 calls and 120,000 puts have crossed the tape, with options volume running at four times the intraday average. The September 9 put is the most popular by far, followed by the December 7 put and weekly 8/26 13.50-strike call, with new positions opening at all three. 

Looking back at the past 10 weeks, calls have been much more popular than usual. This is per Peloton Interactive stock's 50-day call/put volume ratio of 1.71 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 99% of readings from the past year.  

Meanwhile, short interest has been on the rise, up 10.7% in the most recent two-week reporting period. Now, the 38.25 million shares sold short account for a healthy 12.7% of the stock's available float. 

Today's jump has PTON on track to snap a five-day losing streak, which had it moving back toward its July 15 record low of $8.22. Year-over-year, the equity is down 88.2%. 


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