May 10, 2023
Buy Uber (UBER) December 40/50 Bull Call Spread (exp. 12/15/2023) for $3.70 or less.
As I wrote yesterday, UBER was at the top of my watchlist following a strong reaction to earnings, continued strength in the days that followed, as well as consistently bullish option activity, including:
Buyer of 14,000 Uber (UBER) June 40 Calls for $1.40 – Stock at 38.75
Buyer of 3,500 Uber (UBER) July 42.5 Calls for $1.07 – Stock at 38
Buyer of 2,700 Uber (UBER) May 36 Calls for $1.69 – Stock at 37
Buyer of 7,000 Uber (UBER) July 40 Calls for $0.95 – Stock at 35.5
Buyer of 5,000 Uber (UBER) July 45 Calls for $0.37 – Stock at 36.5
And while I think the market is still suspect as the regional banks continue to worry me, should the indexes get in gear, UBER has leader written all over it. Let’s add the stock to the portfolio today.
To execute this trade you need to:
Buy to Open the UBER December 40 Calls
Sell to Open the UBER December 50 Calls
The most you can lose on this trade is the premium paid, or $370 per bull call spread purchased.
Stepping back, as noted above the market “worries” me. However, more and more earnings season winners are popping up, and after sitting mostly on the sidelines for the past month with new buys, I want to add exposure to the portfolio today via UBER.
| Position (Original) | UBER December 40/50 Bull Call Spread |
| Position Strategy | Bull Call Spread |
| Opened Date | May 10, 2023 |
| Expiration | December 15, 2023 |
| Net Price | 3.25 |
| Strike | 40/50 |
