Business

There's a compelling opportunity in this ridesharing name

CNBC June 02, 2026 1 views
There's a compelling opportunity in this ridesharing name

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For today's trade setup, I am zeroing in on a compelling opportunity in Uber . This specific play is an excellent vehicle for mastering options mechanics because it allows you to get skin in the game while risking as little as $50 per trade. Sizing up is incredibly simple, too, as you just add contracts to match your risk tolerance. For instance, stepping up to a 10-contract position scales your risk to exactly $500. Winning trades return a clean 100% ROI on your committed capital in 30 days or less, utilizing the exact same underlying structure that drives my automated trading algorithm, Maya . This is a pure technical setup, and I am monitoring three of my favorite core metrics to verify that this upward momentum is the real deal: Directional movement index (DMI): The DMI is used for measuring trend intensity. It tracks three moving parts: the DI+ (green buyer line), the DI– (red seller line) and the ADX (blue line), which rates the overall strength of the macro trend. While a standard reversal shows these lines flattening out, the ultimate confirmation comes from a formal DMI crossover (when the green line slices cleanly above the red line). We are on the verge of seeing this exact bullish cross trigger, which is an indicator that the structural trend has officially flipped. Calibrated MACD (5, 13, 5): The moving average convergence divergence (MACD) remains a vital pillar of trend-following analysis. While standard configurations are fine, they frequently lag when momentum shifts quickly. To capture a sharper edge, I rely on a faster (5, 13, 5) setting. UBER flashed a decisive bullish crossover just yesterday. Relative strength index (RSI): The final piece of the puzzle is the RSI, which tracks the velocity and magnitude of structural price changes. The RSI has been climbing sharply over the last few sessions, adding a critical layer of confluence to our thesis and confirming that buyers are stepping in aggressively to defend the equity. The trade setup: UBER 73-74 bull call spread To capitalize on this technical pivot, I am deploying a standard bull call spread. This vertical structure is fantastic for choppy market environments because it lets us capture upside exposure while enforcing a strict, immutable ceiling on our total risk. With UBER currently trading around $73.77, I am targeting the 73/74 call spread. This means buying the $73 call and simultaneously selling the $74 call within the same expiration cycle. If UBER's price fluctuates before tomorrow's entry, the execution rule remains fluid: simply buy the single strike just beneath the live price and sell the strike immediately above it to build your spread. Why I like it: Capital efficiency: You can reliably fill this dollar-wide spread for a debit of roughly $0.50 per contract, keeping your upfront cost remarkably low. Seamless scalability: This low baseline price makes risk management entirely predictable. For example, moving into a 50-contract layout means risking exactly $2,500 (50 contracts × $50 risk per spread). Optimized risk/reward: If UBER closes at or above $74 at expiration, which is just a few cents away from where the stock is currently spinning, the spread expands to its maximum value of $1. This turns your $2,500 risk into a matching $2,500 profit, locking in a 100% return on risk. Here is my exact trade setup: Buy $73 call, June 26 expiry Sell $74 call, June 26 expiry Contracts: 1 Cost: $50 Potential Profit: $50 -Nishant Pant Founder: https://tradewithmaya.com/ Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: Pant has an UBER bull call spread expiring on 6/26/26. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

<small>Source: CNBC</small>

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