Options experts: What PTON call to buy?

Discussion in 'Options' started by VEGASDESERT, Apr 12, 2022.

  1. newwurldmn

    newwurldmn

    i would by the jun 24 call for 3.9. at 33, i bet you make 5 or 6. if it sits here, you lose < 2.
     
    #11     Apr 12, 2022
    VEGASDESERT likes this.
  2. Matt_ORATS

    Matt_ORATS Sponsor

    If you look at call spreads, here are the results with a 10% bullish assumption. Note the D% column is with the shifted distribution to make the expected value of the stock price up 10%.
    [​IMG]

    Here's how I rank the columns in the table above to calculate the Rank column:
    [​IMG]
    I have the distribution and forecast weighted equally and the reward risk up there too.

    Here's the top ranking call spread given these inputs and my ranking:
    [​IMG]

    The break even is $28.75 and the reward risk is 8.3 : 1.
     
    #12     Apr 12, 2022
  3. Matt_ORATS

    Matt_ORATS Sponsor

    Here's that trade overlaid with the stock price, insider trades (note the large buy in green up arrow), valuVol shading (the green is buy and red is sell), and trendlines.
    [​IMG]
    The IV/HV graph at the bottom with the earnings line in the future shows that earnings is 5/5 so the 5/6 has the earnings move.
     
    #13     Apr 12, 2022
  4. VEGASDESERT

    VEGASDESERT

    soooo, this isnt exactly what i had in mind. :wtf: :D

    no sense in selling here, gotta ride it out now. buyout anyone? :rolleyes:

    pton.jpg
     
    #14     May 10, 2022
  5. nitrene

    nitrene

    I've never seen a company go from market darling to pariah as quickly as Peloton. Down a mere 92% in 16 months. Amazing. Now I hear they want to dump their hardware and become a software only company.
     
    #15     May 10, 2022
  6. VEGASDESERT

    VEGASDESERT

    yeah, its kind of mind boggling to watch last few weeks dump into single digits.
     
    #16     May 10, 2022