Options News
$PTON bears cycle for profits
Option traders are riding for fast profits on downside positions in Peloton (PTON) today. On Aug. 7, Market Rebellion’s Unusual Activity Service found that 2,600 August $8.50 puts were bought for $0.46 to $0.57 above the existing open interest of 578 contracts with shares at $8.57. Those puts have traded for as much as $1.50 this session, […]
Option traders are riding for fast profits on downside positions in Peloton (PTON) today.
On Aug. 7, Market Rebellion’s Unusual Activity Service found that 2,600 August $8.50 puts were bought for $0.46 to $0.57 above the existing open interest of 578 contracts with shares at $8.57.
Those puts have traded for as much as $1.50 this session, a 163.16% return, while the stock fell 18.44% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.
PTON was last up 1.74% at $7.02.
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