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Peloton Interactive Inc. (Symbol: PTON) launched new options trading today for contracts expiring on November 14th. Key highlights include a put contract at an $8.50 strike price with a current bid of $0.59, offering a potential cost basis of $7.91 per share. This represents a 1% discount to the current trading price of $8.61, with a 62% chance of expiring worthless, yielding a potential 6.94% return on cash commitment, or 58.86% annualized.
In addition, a call contract at a $9.50 strike price is currently bid at $0.42. If exercised, it could provide a total return of 15.21% based on the current share price, though there is a 48% chance it could also expire worthless. The implied volatility for the put contract is 130%, while it’s 128% for the call contract, against an actual trailing twelve-month volatility of 80%.
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