Peloton Interactive (PTON) is down more than 8% today after the company reported a larger-than-expected loss. I expect the sell-off to be short-lived and $100 to hold as support.
We have a net debit on PTON from an ongoing spread position. I am recommending we initiate a new silly spread today to reduce that net debit.
You can enter today’s spread even if you were not in the previous trade. Just be aware that we will be tracking it as an ongoing position.
If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.
Current Stock Price: $104.251
Net Debit: $7.06
- Sell to open the PTON Sep Monthly (9/17) 90 Put for around $1.15
- Buy to open the PTON Sep Monthly (9/17) 80 Put for around $0.39
- Set initial credit limit at $0.76
New Net Debit: $6.30