Bullish – LYFT – $36.89
The S&P 500 (SPY) had its first major pullback in months this week and has challenged the major $300-302 support level on Thurs and Friday. We expect this week to continue with downside pressure as coronavirus cases continue to grow and geopolitical unrest remains elevated. A meaningful break below $300, will likely bring $285 support as a downside target.
LYFT Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at LYFT after their guidance last week with strong May growth and expected small EBIDTA loss. LYFT recently broke out above $35 on this news, and retested as support last week. Expecting LYFT to bounce higher off of $35, Tony suggests selling a July 10 $36.5/$31.1 Put Credit Spread @ $1.90 Credit. As of Friday’s close, this spread was trading at a $2.15 Credit.
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