Schwab Network

Options Corner: UBER Extending Robotaxi Reach

The Options Corner segment dissected Uber’s recent share performance, noting a modest 1.5% decline year‑to‑date while the broader S&P 500 surged roughly 29%. Analysts highlighted that Uber remains entrenched in a downward‑sloping channel, with the price hovering near the channel’s upper boundary and facing resistance around $79‑$87. Technical indicators painted a mixed picture: the stock recently crossed above its short‑term 5‑day and 21‑day moving averages near $72, and the 63‑day EMA sits just above that level, while the RSI has nudged past the neutral 50 mark, suggesting tentative bullish momentum. Volume‑profile nodes cluster around $74, reinforcing the $70‑$75 support zone that has held over recent months. Rick Duquette provided the chart framework, and senior contributor Tom White illustrated a concrete options play. He recommended selling a cash‑secured put at the $70 strike with a 30‑day expiration, collecting roughly $2.25 per share. The trade offers a $8% downside cushion should Uber dip below $70, while still allowing participation in potential upside and the earnings‑driven volatility expected on May 6. For investors, the strategy balances risk and reward amid uncertain short‑term catalysts. The upcoming earnings report could swing implied volatility, making the put credit attractive, while Uber’s broader robotaxi ambitions remain a longer‑term growth narrative that may eventually lift the stock beyond its current technical constraints.