Dear Reader, Last week, a company announced a partnership with Amazon that put fitness company.. [afdaf3fd61bec5de782f6956499cf967c4d37d87][5ba6df09f6dbcb9ba8424d0bb0adfdd894b90fc3]
An Earnings Beat Sets Up a Trading Opportunity
[Options Profits Daily]
Fake News Sets Up an Opportunity to Gain of 143%
Last week, a company announced a partnership with Amazon that put fitness company Peloton in the news. Later, “An Amazon spokesperson said late Tuesday that the company had no formal partnership with Echelon, while Echelon CEO Lou Lentine told Fox Business that Amazon’s response was a “complete surprise,” citing conversations with Amazon in developing the bike.
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Despite the fiasco, Peloton shareholders got a wake-up call—the Echelon announcement and the immediate selloff suggested the risks to Peloton stock should a true rival come along and undercut the company on price.
But, for now, the Echelon-Amazon episode highlights what Peloton has going for it: execution, brand awareness, and premium technology leadership—and why investors have been willing to award it a nosebleed multiple.”
All this back and forth created a [trading opportunity.](
As we explain [in this educational article,]( there are strategies that can benefit from news, even when it turns out to be fake news, while considering risks of a reversal.
This options strategy is one that is focused on risk and is able to limit the risk to a precise level in dollar terms. In this trade, which we explain in detail, the risk is limited to $205 based on recent market prices.
Despite that focus on minimizing the potential risk of the trade, the strategy is still capable of delivering large-short term returns. We show how to find the exact amount of risk in dollar terms and we also detail the potential gains of the trade which is about 143%, based on actual recent market data.
You can find all of the details of the strategy and the specific trade in our latest free educational article that is [available right here..](
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