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Thursday, 01/04/2024 2:53:08 PM

Thursday, January 04, 2024 2:53:08 PM

Post# of 648882
Tiktok Deal Draws Options Traders to Peloton (PTON) Stock
By: Schaeffer's Investment Research | January 4, 2024

• Peloton and TikTok agreed to collaborate on a new workout content hub

• Options volume is running at double the intraday average

Peloton Interactive Inc (NASDAQ:PTON) is surging today, last seen up 8.9% at $5.86 at last glance, following another partnership announcement. The company inked a deal with TikTok to create an online workout hub called #TikTokFitness, which will house custom Peloton content.

Traders are taking aim at the stock following the news. So far, 24,000 calls and 9,962 puts have crossed the tape, with options volume running at double the intraday average. New positions are opening at the most popular weekly 1/5 6-strike call, which expires at the end of tomorrow's session.

Looking back, calls have been more popular than usual over the past two weeks, per Peloton stock's 10-day call/put volume ratio of 7.32 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than all other readings from the past year.

Meanwhile, short interest is rapidly unwinding, down 10.8% in the last month. Still, the 3.84 million shares sold short account for 13.7% of the security's total available float.

On the charts, PTON continues to struggle after a mid-August bear gap culminated in all-time lows below the $4.30 area. However, the stock has managed to add nearly 13% over the last three months, though it remains 34.2% lower in the last 12 months.

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