Options Bulls Hop on Peloton Stock After Upgrade

Core Viewpoint - Peloton Interactive Inc's stock has seen a significant increase following an upgrade from UBS, indicating potential for further bullish sentiment in the market [1] Group 1: Stock Performance - Peloton's stock is currently trading at $6.84, up 10.7% after UBS upgraded its rating to "buy" and raised the price target to $11 from $7.50 [1] - Despite the recent gains, Peloton's stock has a year-to-date deficit of 22.4% and has struggled to break resistance at $7 since a bear gap on June 17 [2] - The stock has shown an 84.7% year-over-year lead, indicating strong long-term performance despite recent challenges [2] Group 2: Analyst Ratings and Market Sentiment - Out of 22 analysts covering Peloton, 13 have a "hold" or worse rating, suggesting room for more bullish notes [1] - The stock's short interest is significant, making up 18.7% of its available float, which could lead to a short squeeze [1] Group 3: Options Trading Activity - Options traders are exhibiting a more bullish sentiment, with a 50-day call/put volume ratio of 12.13, higher than 98% of readings from the past year [3] - There has been a notable increase in call options trading, with 19,000 calls traded, which is four times the typical volume, compared to 3,046 puts [4] - The most active options contract is the weekly 8/1 7-strike call, indicating new positions being opened [4]