fitness care Peloton Interactive Inc (NASDAQ:PTON) has struggled on the charts lately, although security has made a nice recovery from its May 6, annual low of $80.48. PTON recently regained support from the 120-day moving average, a trendline that put pressure on shares for several months earlier this year. Shareholders’ equity is muted today, last down 0.4% to $115.80, and continues to fall 23.7% so far. Meanwhile, the company plans to report taxable earnings for the fourth quarter after today’s close, an event that could send its stock soaring if the past is precedent.
As for Peloton’s past performance after earnings, security tends to move lower after the company reports. In fact, out of the last eight quarterly reports, the stock has only risen once, which happened in May 2020 when PTON saw a 16% move the following day. Over the past two years, equity has made an average move of 6.6% the next day regardless of direction, and this time the options pits are pricing in a much larger move of 12.3%.
Options traders are warming up to PTON’s earnings event. So far, 33,000 puts and 31,000 calls have crossed the tape – twice as many as today. The two most popular contracts are the weekly 8/27 105 and 95 strike puts, while the latter open positions.
And as we noted in our most recent coverage of: Peloton stockPuts have been all the rage lately. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), PTON has a 10-day put/call volume ratio of 1.45, which is higher than 89% of the market’s readings. past 12 months. This means that puts are retrieved faster than usual.
Meanwhile, now might be a good time to weigh the PTON’s next move of options. The security Schaeffer Volatility Scorecard (SVS) stands at a relatively high 88 out of 100, meaning the stock has surpassed options traders’ volatility expectations in the past year – a good thing for buyers.