tastytrade logo
Peloton studio in New York City

Dec 13, 2021

Peloton Stock: Where Next After Further Weakness?

By:James Blakeway

Peloton (PTON) shareholders can’t seem to catch a break in 2021 with the stock down yet again on Friday. That selloff was supposedly driven by the portrayal of the bike on the latest episode of Sex and the City.

Regardless of the reason for the price action the stock now faces a 74% loss year-to-date after hitting a high price of $171.09 in January. Though for context, this year’s fall in price is after a 434% return in PTON for 2020, compared to 16% for the S&P 500.

Peloton’s fall may not be that surprising given the context of last year and the exuberance for work from home and stay-at-home stocks. As we wind down the year, many parts of the world are shifting back to normal-ish life as people return to work, or to Peloton’s chagrin, return to gyms.

Trade Ideas in Peloton Stock

Traders looking for a short-term jump in Peloton’s price may be interested in a defined risk short put spread. The trade below was featured in Quiet Foundation’s Alpha Boost email this morning.


This trade collects $70 in premium by combining the sale of the 37 put option with the simultaneous purchase of the 35 put. The trade makes money if PTON stays above $36.30 by January expiration.

Traders less eager to pick a direction with a higher risk appetite may be more interested in a short strangle position.


This trade does involve undefined risk, traders should be willing to be long or short PTON stock if entering this trade. However, the potential return on capital is high (34%) due to the limited buying power required ($387) to place the trade, combined with the relatively high premium amount ($133).

Traders should keep in mind that buying power on undefined risk is not static and could move with moves in the market.

Sign up for the Alpha Boost newsletter for more trade ideas sent directly to your inbox and check out the Follow Feed on tastyworks for the latest strategies from tastytrade co-hosts.


Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com. 

tastytrade is a trademark/servicemark owned by tastytrade.

tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).

tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.

Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.

© copyright 2013 – 2022 tastytrade. All Rights Reserved. Applicable portions of the Terms of use on tastytrade.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastytrade’s podcasts as necessary to view for personal use.