Path Prediction for PTON before/after Earnings Call

I think the market overreacted a little to the news of PTON recalling treadmills and believe that PTON will rise up to the neckline of the Head and Shoulders pattern (refer to my last two posts) before crashing down. The stock is oversold on the 1H chart, along with the 1D chart and will be rising back into the BB channel in a few hours, most likely. I believe PTON will beat earnings estimates tomorrow, giving it the short boost that will propel it back to the neckline. Upon resistance rejection, the share price will drop and the short opportunity will hopefully present itself.

I will keep this and my last post updated with my current position on the stock. Happy trading, everyone!

Trade active:

BTO PTON $95 Put Exp. 07/16/21

Comment:

Will be adding to my position upon any bounces upwards.

Comment:

This idea is very much still active. Earnings boosted the price after-market just as I had originally predicted. I will now be looking to add to my short position tomorrow assuming the PTON opens at its current price or higher. There is a lot more selling pressure than buying, as well, as indicated by taking one glance at the order book, so we are looking golden for tomorrow!

Comment:

Added more $95 Puts Exp. 07/16/21 to my position earlier when the price was ~$89. This prediction was beautifully validated by the price action today and I hope you all were able to grab some more contracts when the entry presented itself.