On CNBC's "Options Action," Mike Khouw shared with the viewers his way to trade Uber Technologies Inc (NYSE: UBER) ahead of earnings. Uber reports on August 6 and the options market is implying a move of around 9% in either direction.
Khouw finds it extraordinary that the stock is trading higher on the year inspite of the impact of Covid-19 on its business. Uber also has other issues, like big negative cash flow and anti-trust concerns.
Khouw has a Neutral to Bearish view on the stock so he wants to sell the August $30.50 call and buy the August $31.50 call for a total credit of 40 cents.
If the stock stays below $30.90 at the August 21 expiration, Khouw is expected to collect the premium, which is his maximal profit. He can at most lose 60 cents per share with this trade.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
"trade" - Google News
August 01, 2020 at 08:26PM
https://ift.tt/3gql66U
Mike Khouw's Uber Trade Ahead Of Earnings - Benzinga
"trade" - Google News
https://ift.tt/2VQiPtJ
Tidak ada komentar:
Posting Komentar