DailyPlay – Opening Trade (UBER) – August 1, 2022

Bullish Opening Trade Signal

View UBER Trade

Strategy Deta

Strategy: Short Put

Direction: Bullish

Details: Sell to Open 1 Contract Aug 19, 2022 $22.50 Put @ $124 Credit.

Total Risk: This trade has a max risk of $2,130 (1 Contract x $2,130 per contract).

Trend Continuation Signal: This is a Bullish trade on a stock that is experiencing a bullish trend. 

1M/6M Trends: Bullish/Neutral

Technical Score: 2/10

OptionsPlay Score: N/A

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Investment Rationale

By looking at the UBER chart, we can see a primary downtrend since February 2021. Over the last few months, we saw a bottom coming in as an inverted head-and-shoulders formed, and this targets about $28 to the upside which we could see on the earnings catalyst. Another factor to consider for a bullish trade is the comparison between UBER and its biggest rival, LYFT. LYFT’s revenue growth has been half of what we see in UBER. More interesting is the rich Implied Volatility as we are going into earnings. Right now the market is implying a +- 12% move versus the historical average of only +- 5.3% over the last 8 quarters. What we will be doing is to harvest this Implied Volatility by Selling a naked Put option. 

UBER Daily