Peloton Stock Slowed by Wider-Than-Expected Loss

Group 1 - Peloton Interactive Inc reported a fiscal third-quarter loss of 12 cents per share, which was wider than the expected loss of 7 cents per share, but still represents a 73% improvement year-over-year [1] - The company's revenue for the quarter was $624 million, exceeding expectations but showing a decline compared to the previous year [1] - Peloton has raised its outlook for 2025, indicating a positive long-term perspective despite current challenges [1] Group 2 - Following the earnings report, Peloton's stock dropped 13.8% to $6.02, with the stock having averaged a 19% post-earnings swing over the past two years [2] - Year-to-date, Peloton's equity is down 29.4%, and the stock has faced resistance at the $7 level, which aligns with its 80-day moving average [2] - The 14-Day Relative Strength Index (RSI) for Peloton was noted at 80, indicating it was deep in "oversold" territory prior to the drop [2] Group 3 - There is a notable interest in options trading for Peloton, with 65,000 calls exchanged compared to 8,302 puts, resulting in an overall options volume that is 2.5 times the average daily amount [3] - The most popular options are the weekly 5/9 6-strike call and the June 8 call, suggesting bullish sentiment among options traders [3] Group 4 - Over the past two weeks, there has been a significant call bias in Peloton's options trading, with 24,255 calls traded against just 4,447 puts [4]