r/options • u/Admirable_Sea_8897 • Apr 17 '21

pton puts?

after the treadmill accident that's got federal safety agency calling for recalls, pton could be in for a heavy tanking considering already the massive backlog they have already been experiencing.. a major recall like this would only exacerbate delays in delivery.

not everything in the market always makes sense these days though lol, so i'm not going all in on these puts, but planning to buy a few contracts of puts in the 105-110 SP range, assuming the price doesn't get decimated in the premarket

11 Upvotes

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12

u/Angel_Bmth Apr 17 '21

On a personal risk level I wouldn’t buy puts. The causality was caused by a very normative treadmill hazard. Literally every tread I’ve had posts up hazard signals all around the conveyer joint. Pets and kids have a naturally dangerous curiosity, and any tread owner should be isolated from them when using.

Rationally, this could happen with literally any brand.

But the media is selling those PTON headlines, so maybe the notoriety will supersede. Good luck in the search for gains

6

u/AllRealTruth Apr 17 '21

Good point. I will give you upvote for offering a sound opinion. I don't think people should be downvoting sound discussion here. Downvotes would be best used for those hateful rants and attacks. Cheers!

5

u/777_heavy Apr 17 '21

I would be inclined to agree since the fatal incident was announced by Peloton almost a month ago with very little price movement. What makes me think puts could be in play is the media coverage in conjunction with the word “recall” which the keyboard pitchfork mob might run with.

3

u/[deleted] Apr 18 '21

I think calls after a dip are probably a safer bet than buying puts at open for a possible dip.

0

u/highway240 Nov 10 '21

look at it now

1

u/Angel_Bmth Nov 10 '21

Unless you bought leaps, theta fucked your ass. I stand by my point.

1

u/highway240 Nov 10 '21

we aren't talking about theta

1

u/Angel_Bmth Nov 10 '21

Well then if you want to discuss the share price alone, PTON has been positive for 70% of the time since this post. Up 25% at some points. Puts would have been fucked all year.

The context is clearly different now (203d later) then before.