Trade Call: Sell Cash Secured Puts on Uber (UB)

about 21 hours ago

Mark Roussin

"So, for me, since I want to buy more of this stock, what I'm going to do is utilize an option strategy. I'm going to sell a cash secured put which is going to allow me to potentially purchase this stock at a price I'm comfortable buying it at. And while I wait, I get paid an income immediately. So, taking a look here at the option chain for Uber, we are looking at the expiration date about 30 days out with November 21st. The two strikes that I'm honing in on to sell puts on would be the $90 strike and the $85 strike. The $90 strike would earn me around $290 in income for one contract. The $85 strike would earn me almost $150 in income. So, I'm close to earning $450 in income if I did one contract at both of these strike prices. I would be committing to purchase 100 shares of Uber at $90 and 100 shares of Uber at $85 if they were to fall below these strike prices before expiration."

The speaker outlines a clear trade call on Uber (UB) by selling cash secured puts with strikes at $90 and $85, expiring about 30 days out. The strategy is designed to generate immediate income while positioning to purchase more Uber shares if the price declines, showing strong bullish conviction on the stock.

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