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To Peleton and Beyond

Unusual Call Block just came in on the 120 PTON Calls in July 23rd expiration.

After getting beaten up by recalls and the seeming dangers to small children from their treadmills, PTON traded as low as $80 on the year. A nice 20+ point recovery came after RSI and Stochastics both showed unsustainable oversold levels.

Off the Charts

Currently Trading at the $108 level today, it seems PTON wants to consolidate before making a push to that 115 (38.2 Daily Fib Level) level once more.

Courtesy of TC2000*

Containing a neutral RSI and Stochastics currently, PTON is glued to the 8 EMA and the 50 SMA on the Daily Chart. Perhaps a resetting of the RSI could give us a small bounce to finally try and fill that gap at the 116 area.

Separation found between the 200 SMA and the 50 SMA show us that consolidation is needed, but not shown for how long. Our Bollinger bands are beginning to tighten, which is what we want to see before a large move. For the time being we may be stuck between the 100 and 115 levels, but 120 is on the horizon.

Options

Options chain wise, IV Rank is currently at 2, showing Implied Volatility relative to itself is considerably low. The June 25th expiration is currently pricing in a $4.73 expected move, while the July Monthly’s are sitting with a $11.36 expected move priced in. It seems short term everyone is either trying to hedge, or is looking for a small pop as all the open interest is coming on the Call side. Especially in the July Monthly Cycle above and beyond the 125 Strikes.

The Unusual Call block we mentioned at the top of the article came in the July week 4 options expiration cycle. This is odd because most of the time we see all the volume under 35 DTE in the monthly cycles.

Could a magnet to 120 becoming on the horizon? How would you play this chart set up?

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