DailyPlay – Opening Trade (UBER) – September 16, 2024

UBER Bullish Opening Trade Signal

Investment Rationale

Based on recent news, Uber Technologies gapped up at the open on Friday and closed near its high for the day. The news has slightly spiked implied volatility on short-term options, so we chose a bullish strategy that anticipates continued momentum to the upside while expecting implied volatility to realign with historical levels in the short term.

UBER – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 8 UBER Oct 4 $69/$66 Put Verticals @ $0.53 Credit per share.

Total Risk: This trade has a max risk of $1,976 (8 Contracts x $247) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $247 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock we expect to maintain its upward momentum after its recent breakout to the upside.

1M/6M Trends: Bullish/Bullish

Relative Strength: 3/10

OptionsPlay Score: 95

Stop Loss: @ $1.06 Debit (100% loss to the value of premium)

View UBER Trade

Entering the Trade

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

PLEASE NOTE that these prices are based on Friday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View UBER Trade