Peloton Interactive Option Alert: Oct 18 $6 Calls Sweep (35) near the Ask: 1773 @ $0.43 vs 942 OI; Ref=$3.55
Portfolio Pulse from Charles Gross
There was a notable options activity for Peloton Interactive, with a sweep of 35 calls for the October 18 expiration at a $6 strike price. The volume of 1,773 contracts at $0.43 each was observed near the ask price, compared to an open interest of 942 contracts, with Peloton's stock reference price at $3.55.
May 03, 2024 | 1:50 pm
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The observed options activity could indicate investor speculation on Peloton Interactive's stock price increasing beyond the $6 strike price by the October 18 expiration date.
The significant volume of call options at a strike price higher than the current stock price suggests that investors are betting on Peloton's stock to rise. This activity, especially when it exceeds open interest, can often lead to increased buying pressure on the stock as investors may buy shares to hedge their options positions, potentially driving up the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90