TopOptionAlert
Oct 22, 6:56 AM
$PTON NOV20 5.5C · still actionable
Zone:
$5.20 to
$5.28
Invalidation: close under
$5.06
Objectives:
$5.50, then
$6.00
The math: up 5.0% to the first objective and 14.5% to the second, against 3.4% risk on the invalidation, better than 4 to 1 to the second
Dear friend, picture a stock that spent weeks building a floor near five dollars and then tried to lift, only to get pushed back to
$5.24 on Wednesday. That pullback is the whole idea here. This is a swing into earnings in early November, bought near support rather than chased up high, so if buyers defend this area the path back toward
$5.50 is short and plain to see. If they do not defend it, the invalidation tells you quickly and you are not left guessing.
P.S. Watch
$5.15 first. That is where the 50 day average sits, and holding it keeps this swing honest.
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