Lyft (LYFT) – Rideshare Jump – June 15th, 2020

Bullish – LYFT – $36.89

Catch OptionsPlay’s Chief Strategist, Tony Zhang on CNBC, Options Action every Friday at 5:30 PM EST!

Market Outlook:
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.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience.

 

Market Outlook Update

Join Tony Zhang from CNBC’s Options Action Tues and Fri mornings on an exclusive look at the markets