UBER Bullish Calendar Call Spread Appears to be a Steal at 62 Cents

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This UBER Calendar Call Spread Could Turn 302% Profit

Bullish play with a target stock price of $76

Strategy has +302% upside potential and 17% undervalued

Strategy: UBER Calendar Call Spread
Sell 28-Jun-24 76 Call0.66
Buy 12-Jul-24 76 Call1.28

Uber Technologies has seen its price gain +3.5% today to $72.03. Today's price action is showing strength in both the stock and the overall market. Setting up this calendar spread with strikes at $76 gives you a bullish bias to tap into UBER stock's strength.

Option Profit Calculator Results for UBER Calendar Spread at 28-Jun-24 Expiration

In this scenario, the optimal stock price for the option strategy would be $76.00 on the date of the first expiration, June 28, 2024. This is equal to the strike price of the options in the spread. Since both UBER and the market are showing upward pressure, and the strikes are above the current stock price of $72.09, the spread is taking advantage of this bullish momentum. If the stock price is $76.00 at expiration, we can benefit from the 28-Jun-24 call, which we sold, expiring worthless, and the option that we are long, the 12-Jul-24 call, will still have time premium built in.

Since we do now know what the exact implied volatility will be on June 28, we can use our historical data to make an educated estimate to help us calculate the value of the 12-Jul-24 option. Applying the median historical implied volatility of 42.5 from similar options, the theoretical value of the call is 2.49 at the date of the 28-Jun-24 expiration. Using the above assumptions gives us a potential upside of +302% for this calendar spread.

UBER Calendar Spread Value vs. Market Price

According to Market Chameleon estimated value, UBER Calendar Spread is trading at a 17% discount to historical benchmark.

If we use historical data to measure how similar spreads in UBER were priced in the market, the 4-year average price was 0.74, with a high mark of 1.19 and a low of 0.33.

Currently, the calendar call spread is bid at 0.40 and offered at 0.62. The midpoint of the spread is 0.51.

If we use 0.74 as our historical fair value benchmark, the current market ask price is at a 17% discount, while the current market midpoint represents a 32% discount.

Current PriceHistorical Values of Similar Spreads
Market Chameleon captures daily records of market data to calculate historical benchmarks and generate estimated values.


The UBER calendar call spread we've identified here can be a good way to play a bullish outlook because the option strategy has a +302% upside potential, is 17% underpriced relative to historical measures, and will benefit from the stock price moving higher to $76.

See how Market Chameleon can help you make smarter and more efficient trades!

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