Uber Technologies $UBER Option Spreads Pick Up, Protective Collar

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An increasing number of option spreads have been detected in UBER stock on February 2, 2022. This suggests that even in the big-name technology stocks, traders are very cautious and are hedging themselves to protect against further downside losses.

Notable spreads trading in Uber include protective collar

Notable spreads trading in Uber includes a Protective Collar. The way this trade works in UBER is that a trader buys 1k Feb $35 puts to sell 1K Feb $45 calls, net debit 74c, possibly closing after shares recovered nearly $4 from the $34 level. Other large spread is the Feb 11th 41/43 call spread bought nearly 1500x for 53c.

When the markets start swinging wildly, investors often run for safety as volatility creates fear among market participants. A Protective Collar is that offers short-term downside protection, offering a cost-effective way to protect against losses and allows a trader to make some money when the market goes up.

Uber and Wallbox to Expand Partnership to All of The U.S.

On February 1, 2022, UBER and Wallbox N.V. (NYSE: WBX), a leading provider of electric vehicle (EV) charging and energy management solutions worldwide, are expanding their partnership nationwide following the pilot program. As previously announced, the partnership provides Uber drivers a discounted package for a Wallbox Pulsar Plus charger, installation and the option to finance the package.

Just a few months after beginning their initial partnership in the Bay Area in October 2021, the companies are expanding their collaboration so that drivers across the U.S. will soon have access to Wallbox’s discounted EV charging package. This will be rolled out in four key groups, in order to reach nationwide coverage by the end of April 2022. Additionally, the two companies are actively discussing a potential global roll-out program beginning in Europe and Canada.

The roll-out is expected to follow four phases; the first covering Los Angeles, Portland and Seattle in January, the second covering Phoenix, New York and Boston in February, the third covering the Midwest and Southeast in March, and the final phase covering the rest of the U.S. excluding Alaska in April.

“Expanding this pilot program across the U.S. is a natural next step as we work together to build more sustainable transportation,” said Douglas Alfaro, General Manager of Wallbox North America. “Our charger plus installation package has simplified EV usage for Uber drivers in the Bay Area, and we are thrilled to be able to offer the same support to drivers all over the country.”

“Helping drivers go electric is a crucial part of our plan to get to zero-emissions by 2030 in the U.S.,” said Andrew Macdonald, Uber’s Senior Vice President of Mobility and Business Operations. “This partnership with Wallbox helps drivers by making it more affordable and accessible to charge their EVs, and we’re excited to give more drivers the chance to take advantage of it.”

The partnership is being supported by an Uber program that makes drivers of fully electric vehicles (EVs) eligible for a Zero Emissions incentive, so they can earn an extra $1 on every Uber trip (up to $4,000 annually).

Wallbox’s worldwide best-selling charger, Pulsar Plus, became an Amazon U.S. Best Seller in just a few months. Pulsar Plus is one of the smallest smart home EV chargers in the U.S., and is compatible with all EVs, including Teslas and can be installed in homes, apartments, and other multi-unit dwellings.

The partnership is part of Uber’s continued commitment to becoming a zero-emission platform in the U.S. and Canada by 2030.

Uber price target lowered to $76 from $82 at Cowen

On January 31, 2022, Cowen analyst John Blackledge lowered the firm’s price target on Uber to $76 from $82 and keeps an Outperform rating on the shares. The analyst expects 4Q2021 gross bookings just above the high end of guide with growth led by Mobility recovery but he trimmed estimates moderately and lowered his DCF due to Omicron.

Uber Partners with Smart & Final to Expand West Coast Grocery Offering

On January 25, 2022, Uber Technologies, Inc. (NYSE: UBER) announced its new partnership with Smart & Final Stores, Inc., the smaller, faster grocery warehouse store for household and business customers, to expand their on-demand and scheduled grocery delivery to customers across the West Coast.

As of today, 173 Smart & Final stores across Arizona, California and Nevada are available to shop through Uber and Uber Eats, with plans to onboard all of Smart & Final’s 254 locations. Smart & Final is the first major grocery US partner to offer alcohol to customers through Uber Eats. Alcohol is now available for delivery in California with plans to expand the offering to Arizona and Nevada later this year.

“Grocery continues to be a rapid area of growth for us this year with millions of consumers ordering groceries and other essentials through Uber each month,” said Oskar Hjertonsson, Head of grocery at Uber. “By partnering with grocers like Smart & Final, we’re able to meet our customer’s demands for more high-quality products, including alcohol, at value prices delivered seamlessly, right to their door.”

Since launching in July 2020, Uber has seen consistent growth in the U.S. for its grocery category. In the U.S. and around the world, Uber is uniquely poised to meet consumers’ growing desire to get the things they need from grocery stores and other merchants in an on-demand fashion within hours—if not minutes—rather than days.

“Consumers are increasingly looking for easy and convenient ways to shop, and this new partnership with Uber allows Smart & Final to bring our more than 3,000 club store items, farm-fresh produce, organic products and even alcohol to new and existing shoppers via a convenient on-demand experience,” said Joe VanDette, Group Vice President – Marketing & Digital. “Smart & Final is committed to providing our customers, whether they be in-store or at home, the opportunity to save time and money without a membership fee.”

📺 Uber named Top 2022 Pick at Morgan Stanley

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📉 UBER Stock Technical Analysis

UBER stock chart as of February 2, 2022, in downtrend.

The short-term trend is negative, as is the long-term trend. UBER is part of the Road & Rail industry. There are 46 other stocks in this industry, of which 68% are performing better than UBER. UBER is currently trading in the lower part of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so UBER is lagging the market.

There is support at 35.20 from a horizontal line in the weekly time frame.

There is a resistance zone ranging from 39.30 to 40.07. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a resistance zone ranging from 42.75 to 42.89. This zone is formed by a combination of multiple trend lines in multiple time frames.

The technical rating of UBER is bad and it also does not present a quality setup at the moment. UBER stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when UBER stock consolidates and has a Setup Rating of 8 or higher.

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