Investors in Uber Technologies Inc (NYSE: UBER) can now trade new options contracts expiring in December 2028. With 990 days until expiration, the pricing of these contracts allows for potentially higher premiums compared to shorter-duration options. The current bid for a put option at a $70.00 strike price is $13.75, which implies a cost basis of $56.25 for shares if exercised, compared to the current market price of $70.95.
On the call option side, a $100.00 strike price call has a bid of $12.95. Should an investor sell this covered call after buying UBER shares at the current price, they could see a total return of 59.20% by the expiration date, assuming the call is exercised. However, there’s a risk of the stock not reaching that price, with current odds indicating a 49% chance that the call could expire worthless. Both options have an implied volatility of approximately 44%, while actual trailing volatility stands at 36%.
