TopOptionAlert
Oct 20, 6:37 PM
$PTON NOV20 5.5C · still actionable
Zone:
$5.30 to
$5.37
Invalidation: close under
$5.20
Objectives:
$5.65, then
$6.00
The math: up 5.9% to the first objective and 12.5% to the second, against 2.5% risk on the invalidation, better than 4 to 1 to the second
Dear friend, think of this one like a bike that finally stopped rolling backward and started to hold its ground. Peloton is holding above 5.20 today, the low that has caught it more than once, and it is up about 2 percent while it waits for earnings on Nov 5. That matters because a washed out name that refuses to break gives call buyers a clean line to trade against, with room back toward 5.65 and then the round 6.00 level if buyers keep showing up. This is a swing, plain and simple, a bounce off support into a dated catalyst with the risk written down before the trade starts.
P.S. Earnings land Nov 5, well before the Nov 20 expiry, so the contract lives through the report instead of expiring in front of it.
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