A Sales Compensation Overhaul That Backfired
MNTN's release reported Q3 revenue of $80.3 million, up 15% from a year earlier, a 79% gross margin, net income of $7.7 million, and adjusted EBITDA of $19.9 million. Cash stood at $252.3 million with no borrowings. The company also appointed board member Tony Weisman as president and CEO; MarketWatch said he succeeds Mark Douglas.
The problem was the comparison with MNTN's own forecast. On the earnings call, Weisman said revenue came in against guidance of $86 million to $89 million and adjusted EBITDA against $22 million to $25 million. He said a new sales compensation structure was implemented too quickly, and that the company "lost about 40% of our experienced quota-carrying sellers." MNTN has since changed the plans, hired 16 new sellers, and added two sales leaders, but said its outlook assumes the Q3 disruption continues into Q4. MarketWatch put the analyst revenue estimate for the quarter at $87.8 million.
A Fourth-Quarter Guide Far Below the Street
For Q4, MNTN guided revenue of $75 million to $78 million and adjusted EBITDA of $8 million to $10 million, which the company said includes non-recurring costs tied to the executive changes. MarketWatch said analysts had expected about $108.5 million of Q4 revenue. Full-year 2026 revenue guidance fell to $311 million to $314 million from $347 million to $357 million, against a FactSet consensus of $352.3 million, and full-year adjusted EBITDA is now guided at $66 million to $68 million.
What the $10 Put Is Worth at $6.17
MNTN has no weekly options, so the November 20 monthly carried the event. At Wednesday's close, delayed Cboe data quoted the $10 call at $0.75 to $1.15 and the $10 put at $0.60 to $0.75. At midpoints, that straddle cost about $1.62, roughly 15.7% of the $10.37 close, with break-evens near $8.38 and $11.62. Cboe's 30-day IV index read about 85.5%.
At a $6.17 premarket print, the $10 put would carry about $3.83 of intrinsic value, more than double the straddle's entry cost, while the $10 call would be far out of the money. Wednesday's option volume was small, about 175 calls and 220 puts, with the busiest line the November 20 $10 put at 214 contracts against open interest of just 31. Volume and open interest do not show which side of each trade was buying.
Thin Chains, Big Gaps, and a Reset Story
A move of this size is several times what the monthly straddle had priced, which is the scenario that hurts short-premium positions most: a short $10 put or a short strangle with a put strike near $8 or $9 would be deep in the money if the open holds near $6. Wide bid-ask spreads on a small, low-volume chain can make both exiting and rolling expensive. After a reset like this, implied volatility often stays elevated for a while because the new CEO, the seller rebuild, and Q4 delivery all leave the outlook open, so option buyers may still be paying up even after the earnings event has passed. Our implied volatility guide explains how IV usually behaves after earnings, and the OCC options disclosure document covers the risks of standardized options.
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*By the OptionsPilot Editorial Team. Published November 5, 2026, 3:18 AM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
