Riding Profits

Michael Shulman

riding profits

Riding Profits

Here is a pandemic stock riding its way to money-doubling profits

Peloton (NASDAQ: PTON) is the fitness monster that went from selling high-end work-out bikes to an in-home interactive membership monster.

I didn’t like Peloton the business or the stock when it first went public in late 2019 at around $29 per share.

It looked like a bicycle hardware company in the middle of the fickle home fitness market that wasn’t getting any love from Wall Street or analysts.

Boy did that change with the coronavirus.

The closing of health clubs and gyms suddenly thrust this one-trick pony of a company right into the consumer’s home … at a time when everyone was forced to shelter in place.

And it accelerated the changes to Peloton’s business model from sales of hardware in stores to an online business creating an interactive experience with a monthly membership fee.

They also expanded into the Roku platform that gives them even more reach.

Now investors are looking at Peloton as a software company with its recurring interactive memberships estimated at 800,000 people paying $39 a month.

You do the math.

And, they are not giving those bikes away. They still get premium dollars for their high-end fitness machines and have added treadmills to the mix as well.

Peloton fits the profile of a perfect pandemic stock.

I started recommending the stock when shares were trading at around $30 and the stock has since doubled!

The best news. There is so much volatility built into this stock that you can sell put options on PTON 10% to 15% out of the money and still collect a big chunk of premium.

Get on board before this money-doubling stock pops again.

 

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About The Author

Michael Shulman is a 30 Year Veteran of the financial markets – as a trader, a financial analyst, a financial writer and most recently as an educator.

Mr. Shulman made his first option trade in 1985 – COMPAQ Computer calls – a position that expired worthless. His second trade broke even; the third brought him a year’s salary, a near twenty to one return on his investment. Michael has never looked back. He entered the financial publishing business formally in 2001 as director of research for ChangeWave Research’s institutional research business and as the writer and editor of Hedge Fund Investing.

He has published two books – Sell Short and Made in America – both of which can be found on Amazon.com and is a frequent contributor to reputable financial sites like Seeking Alpha, MSN, MainStreetInvestor, and Traders Reserve.

His trade recommendations in his Options Income Blueprint, Perpetual Income Portfolio Club and Income Masters services maintain a 98% success ratio, meaning his trades produce the expected income 98% of the time. No one’s perfect.