Options Traders Target Soaring Peloton Stock

PTON is higher on reports that private equities are considering buying the company

Laura McCandless

Deputy Editor

May 7, 2024 at 2:55 PM

PTON

Peloton Interactive Inc (NASDAQ:PTON) stock is soaring today, after reports that private equity firms are circling the company for a potential buyout. At last check, PTON was up 16.5% at $4.13.

Options traders are swarming Peloton stock in response. So far, 96,000 calls and 65,000 puts have been exchanged, which is already five times the overall average daily options volume. The weekly 5/10 3.50-strike put is most popular, where new positions are being bought to open.

Today's pop has the stock further removed from its recent May 2 record low of $2.70, which occurred after the company announced disappointing fiscal third-quarter results, job cuts, and the departure of CEO Barry McCarthy. Since the start of the year, the equity is down 32.5%.

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