I think Peloton (Ticker: PTON) could benefit from the latest mask mandates and vaccine regulations.
Here is the stock chart:
PTON has traded down from a high of $127.57 on July 20 to $108.07 on Friday’s close. That’s down 15% in just over a month.
I am seeing Friday’s candle as an inverted hammer, which can signal the end of a downtrend.
While PTON is announcing earnings on Thursday, I am comfortable owning a call spread through the earnings report.
Since the earnings report is on Thursday, this week’s options have the higher volatility. Therefore, I am going out to next week’s expiration date of Sept. 3.
If PTON opens up and trades higher today, I will buy the Sept. 03 109/115 call spread and pay up to $2.45.
If this spread trades down to $1.75, I will take my losses.
I think PTON can trade back up to $114-$115. I will take profits when the spread trades up to $3.70.
Be sure to be living your dream.
Thanks for Reading … See You Next Tuesday!