In Tuesday’s Blitz Daily with Lance Ippolito, we take another look at fitness tech stock Peloton as shares continue their run higher on buyout rumors.
Traders might have thought the rocket ship ride for Peloton was over, but Tuesday’s session — on the heels of 2,800 jobs cut and poor earnings — showed there was still plenty of fuel left in the tank..
It’s no secret that Peloton had been on a nasty slide — losing nearly 85% of its share price from a year ago — and became a short-selling magnet.
And there’s nothing like a single-day 30% jump in share prices to force all of those shorts to cover!
After Monday’s monster move on buyout rumors, shares continued to spike Tuesday for back-to-back 30% rips at one point!
The options chain was insane with puts and calls hitting the tracker all day, with one big swinger sweeping up 38,000 contracts of the Feb. 11 $40 strike calls for over $316,000 in premium!
Of course, that wasn’t the only name seeing big options buying. I have two more trades tearing up Tuesday’s tape inside…
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