4/5/2020 Plan: With many US States restricting travel, Uber (Ticker: UBER) volume is way down. Their Uber Eats service is likely way up, but with fierce competition, they are losing money on every delivery. While I do enjoy using the service, I have been bearish on Uber and Lyft. With the market down, this trade assumes Uber doesn’t reach it’s recent high for the next few weeks.
4/5/2020 Plan (continued):
- We sell 2x 29.5/33 call spreads expiring 1 May in UBER for a midpoint of 0.40
- Prices are as of market close 4/3/2020, actual fill and strikes may differ depending on Monday open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
4/6/2020 Entry: sold 1 May 30/33 call spreads for 0.41 x2. This is a narrower spread for a bit more credit, as Uber increased on Monday
4/12/2020 Update: The position is down some and one could get out now relatively unscathed.
4/24/2020 Update: Plenty of opportunities to exit this week for a small loss. If you choose to keep it on, note that it expires in 1 week.
5/1/2020 Exit: The drop in the overall market on 4/30 and 5/1 pulled UBER down with it and the spread expired entirely worthless. This was an interesting trade in that we had a chance to take it off early for a profit, close it for a small loss, we could have rolled it another week for a credit or just sat on our hands and received the full profit.
Received $82 total on the spreads on a risk of $518 for a return of almost 16% in 25 days. Any questions on the trade, please reach out directly
