Peloton Traders Swap 29k $4 Calls Due Friday
Peloton was peddling away with a 36% stock climb Thursday after the firm reported a loss in the morning far lower than estimates had feared. The news sent options on the stock $Peloton Interactive (PTON.US)$ soaring to the top eighth position in the entire market, ranked by high stock options volume. Traders swapped 389k contracts Thursday alone.
Peloton reported Thursday a narrowing loss of 8 cents a share, beating the estimates of about 16 cents loss. The firm has lowered its losses compared to a year ago when it reported 68 cents a share. The company reported sales of $643.6 million, up just 0.2% year over year, but outperforming the company's $618 million-$643 million implied guidance range.
One contract stood out: the $4 Calls on PTON due Friday changed hands 29K times. The contract gives holders the right to buy PTON at $4 at 70C a share for 100 shares. $4.50 Calls had even more volume, changing hands 33K. The $4 Calls have blown up in value, jumping 250% Thursday alone.
The subscription segment of the interactive exercise firm delivered $431 million of revenue, up 2.3%, while the connected fitness segment revenue fell 4% to $212.1 million. The company ended the quarter with 6.4 million members, down 2% year over year. Paid connected fitness subscriptions also fell 1% to 2.981 million.
According to moomo data, the equity saw a turnover of 479M, with a net inflow of 25M USD.
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Moomoo News and Community Manager
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