TopOptionAlert
Oct 24, 4:55 AM
$PTON NOV20 5.5C · still actionable
Zone:
$5.33 to
$5.41
Invalidation: close under
$5.21
Objectives:
$5.55, then
$6.00
The math: up 3.4% to the first objective and 11.7% to the second, against 3.0% risk on the invalidation, better than 3 to 1 to the second.
Picture the old home gym hero quietly getting back on its feet. Peloton signed a five year partnership with Lululemon this week and another one with Google's Fitbit last month, and the stock answered with a 14% jump on Thursday, which is what new money coming in looks like. This is a swing, because the partnerships are real revenue doors opening and the chart is still early, sitting well under its old highs. You are risking a close back under Friday's
$5.21 low to see if the partnership story carries into
$5.55 and then
$6.00.
P.S. The Lululemon deal runs five years and makes the two companies each other's exclusive apparel and content providers, so this is not a one week headline.
0 replies
