Peloton Interactive (PTON, Financial) is witnessing a notable increase in bearish sentiment as options trading indicates a strong preference for puts. A total of 4,477 put contracts have changed hands, tripling the usual volume. This surge is primarily concentrated in the weekly 5 puts expiring on May 23 and the 6.5 calls for the week of April 25, with these specific strikes amassing a substantial volume of around 4,400 contracts.
The current Put/Call Ratio stands at 2.63, suggesting a bearish outlook among traders. Additionally, the at-the-money implied volatility (ATM IV) has risen nearly 2 points, reflecting heightened uncertainty in the stock's near-term trajectory. Investors are eyeing Peloton's upcoming earnings announcement, scheduled for May 8, which could further influence trading dynamics.
