Options Market Statistics: Peloton Shares Soar 35% as Turnaround Plan Gains Traction, Options Pop
News Highlights
$Tesla (TSLA.US)$ stock dropped 5.65%. Its options trading volume was 1.76 million. Call contracts account for 61.4% of the total trading volume. The $230 calls expiring August 23 were traded most actively.
Tesla's longtime VP of finance and business operations, Sreela Venkataratnam, announced her departure after 11 years, marking the latest executive exit following Elon Musk's operational shake-ups aimed at preparing for the next phase of growth. Tesla shares dropped over 5% on Thursday.
Venkataratnam cited personal reasons for her departure on LinkedIn, highlighting her achievements and plans to focus on family and well-being. Her exit follows the dismissal of other top executives, including Rebecca Tinucci and Daniel Ho, as part of Musk's April decision to lay off over 10% of Tesla's global workforce.
Despite the layoffs, Musk appears to be rehiring some staff. Meanwhile, Rebecca Tinucci has joined Uber to lead its transition to electric vehicles, amid rising competition with Tesla, which plans to unveil its robotaxi on October 10 and is developing its own ride-hailing service.
$Peloton Interactive (PTON.US)$ stock surged 35.42%. Its options trading volume was 0.55 million. Call contracts account for 74.9% of the total trading volume. The $3.5 calls expiring Sep. 20 were traded most actively.
Shares of Peloton surged over 35% after the company reported better-than-expected second-quarter earnings, marking a turnaround with its first year-over-year sales increase in over two years. Despite missing full-year revenue guidance, Peloton's adjusted EBITDA guidance was favorable, and free cash flow turned positive compared to the previous year's cash burn. This positive performance, amid a backdrop of significant share volatility, has significantly impacted market perception.
Previously, Peloton's shares jumped 20.9% four months ago on buyout speculation by private equity firms. On May 2, 2024, Peloton announced cost-cutting measures, including a 15% reduction in global headcount, aimed at saving over $200 million annually by the end of FY'25. CEO Barry McCarthy stepped down, potentially making the company more attractive to buyers.
Despite these gains, Peloton shares are down 24.7% year-to-date and are trading 37.8% below their 52-week high. Investors who bought shares at the IPO in September 2019 would now see their investment worth significantly less.
$Snowflake (SNOW.US)$ stock tumbled 14.70%. Its options trading volume was 0.45 million. Call contracts account for 54.0% of the total trading volume. The $150 calls expiring August 23 were traded most actively.
Snowflake's second-quarter revenue and earnings slightly exceeded expectations but failed to alleviate long-term bearish sentiments. The stock dropped due to underwhelming guidance. Snowflake reported adjusted earnings of 18 cents per share, beating the expected 16 cents, and a 29% revenue increase to $868 million, above the $852 million forecast.
For the upcoming quarter, Snowflake projected product revenue between $850 million and $855 million, aligning with analyst expectations. Analysts noted stable demand and improved large customer consumption but expressed concerns over competition and execution in artificial intelligence. Factors such as storage headwinds and higher investments may continue to pressure the stock.
Unusual Stock Options Activity
There was a noteworthy activity in $Peloton Interactive (PTON.US)$, where $9 calls have topped volume to open interest ranking. The highest volume over open interest ratio reaches 114.9x with 12,527 contracts.
Daily Active Index & Sector ETF Options
Source: Barchart, Unusual Whales, The Guardian, Bloomberg
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Implied Volatility Rank: Volatility Analysis: IV, HV, IV Rank, IV Percentile
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