We closed our Peloton Interactive (PTON) put position earlier this week, incurring a net debit. The goal was to avoid earnings risk in this volatile stock and re-enter the position after the announcement.
An earlier alert incorrectly cited a net debit for a PTON spread position, but that was meant to be a new standalone trade. It has since been corrected on the member site and I apologize for any confusion this caused.
I am recommending the following position for members who were in the previous PTON put.
However, you can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it as an ongoing position.
If you happen to have already sold the PTON spread, I am not recommending you double up. I like both trades very much, so whichever route you go is good.
Current Stock Price: $125.81
Net Debit: $1.23
Action: Sell to open the PTON Nov Week Two (11/13) 115 Put for around $1.15
New Net Debit: $0.08