MarketMoodz
CNBC Pro: Bull Call Spread Targets Uber at $74 by June 26
CNBC Pro highlights a short-term bullish options idea on Uber (UBER), recommending a $73/$74 bull call spread with the stock around $73.77 and June 26, 2026 expiry. The trade aims to buy the $73 call and sell the $74 call for roughly $0.50, offering defined upside and a low upfront cost.
Key Takeaways
- Entry: buy the $73 call and sell the $74 call expiring June 26, 2026 with UBER near $73.77.
- Debit is about $0.50 per spread, meaning $50 risk and $50 maximum profit per contract.
- Breakeven at expiry is roughly $73.50, and the spread pays off if UBER ≥ $74 on June 26.
- A 50-contract position scales risk and reward to $2,500 each (50 × $50).
- Technical setup cited includes a DMI crossover, MACD (5,13,5) bullish signal, and rising RSI.
People Involved
- Nishant PantAuthor; founder of TradewithMaya.com; CNBC Pro contributor
Entities Involved
- Uber Technologies (UBER)Underlying equity for the options trade
- CNBC ProPublisher of the trade idea and analysis
- TradewithMayaAuthor's trading education platform
MarketMoodz Analysis
This trade is a textbook capital-efficient way to express near-term bullishness while capping downside. Paying roughly $0.50 for a $1-wide spread gives a maximum profit of $0.50 per share if UBER finishes at or above $74 on June 26; that equals $50 per contract and a $2,500 P/L at 50 contracts. The breakeven at expiry sits near $73.50, so the position needs only modest upside from the cited $73.77 reference to finish profitable.
Options on a volatile equity like Uber amplify both opportunity and risk. The spread limits loss to the debit paid and reduces sensitivity to implied-volatility moves compared with a long call, but it also caps upside. Time decay accelerates as expiry approaches, so the position benefits more from a price push than from a volatility spike. Liquidity and bid-ask spreads in the specific strikes matter—execution cost can erode the stated $0.50 edge, and rapid price moves before expiry can flip outcomes.
What to watch: implied volatility and news flow on Uber (earnings, analyst moves or industry catalysts) and the technical signals the author highlights (DMI, MACD, RSI). If implied volatility collapses or liquidity thins, consider smaller sizing or a closer exit plan; if price momentum accelerates past $74 early, the position can be closed to lock gains before time decay or volatility changes. Remember this is a single trade idea from one CNBC Pro piece and not financial advice—check execution costs, your risk tolerance, and alternative structures before acting.
Source: Original Article