Here at Breakout Multiplier, we're all about booking big gains—and our Peloton $PTON play just hit it out of the park.
A month ago, we scooped up the 11/15 $7 calls for a cool $0.16.
By October 18th, we'd already sold half for a triple. This set us up to let the rest ride into earnings, while already securing a profit on the full position.
In other words, if the remaining calls went to zero (which they did not), we still made money on this trade.
Today, Peloton's ripping, up over 30% on the heels of earnings, and our calls are going through the roof, trading as high as $2.00 in today’s session.
That’s right—a 12-bagger, a whopping 1,000%+ return!
This is what Breakout Multiplier is all about — finding these favorable setups, securing doubles, and leaving room for moonshot moves. Buckle up!
It’s important to understand that in a situation like we are in with Peloton right now, implied volatility is moving against us at a rapid pace.
After earnings events, volatility gets crushed and stock options are repriced lower, all things equal.
So, if PTON is not moving steadily higher, like it is today, we’re probably giving back some money on these calls.
What I am really trying to say is now is not the time to be greedy.
The big risk-takers might want to hold a small remaining position to see if we get follow-through tomorrow. There’s nothing wrong with that.
I’ll probably close all mine by the end of day. 12x is more than enough to make me happy.
I’ll be focusing my energy on finding the next multi-bagger.
