So, some really big people who have a lot of money invested in a company called Uber are trying to guess how much it will be worth in the future. They look at how many people use Uber and how often they use it to make their guesses. Right now, these big people think that Uber might be worth somewhere between $57.5 and $90 for each share of the company. They also watch how much other people are buying and selling shares to see if there's a lot of interest in the company. This helps them decide when they want to buy or sell their own shares. Uber is a big company that helps people find rides, food delivery, and even maybe flying cars someday. They have lots of users all over the world and make money by charging people for using these services. Read from source...
- Article title is misleading and sensationalized: "Check Out What Whales Are Doing With UBER" implies that whale investors are doing something remarkable or unusual with Uber Technologies, when in fact, they are just making regular options trades like any other market participant.
- Article body contains several irrelevant and unsupported statements, such as: "This data can help you track the liquidity and interest for Uber Technologies's options for a given strike price." (liquidity and interest are not measurable or meaningful concepts in this context); "The firm's on-demand technology platform could eventually be used for additional products and services, such as autonomous vehicles, delivery via drones, and Uber Elevate, which, as the firm refers to it, provides 'aerial ride-sharing.'" (these are all speculative and hypothetical scenarios that have no bearing on the current options trading activity or price performance of Uber Technologies).
- Article body also contains several logical fallacies and contradictions, such as: "Largest Options Trades Observed:" followed by a list of trade types, strike prices, total trade prices, open interest, and nothing else (this is an incomplete table that does not provide any meaningful or relevant information to the reader); "With a volume of 12,652,378, the price of UBER is down -0.11% at $69.05." followed by "RSI indicators hint that the underlying stock may be approaching overbought." (these are conflicting statements that do not follow from each other or support any argument about the options trading activity or price performance of Uber Technologies).
Possible recommendation: Buy a call option with a strike price of $90.0, expiring in one year, and pay a premium of $5.0 per contract. This would give you the right to buy Uber Technologies's stock at $90.0 within the next year, which is higher than its current market value of $69.05. The breakeven point for this investment would be $95.0, meaning that if Uber Technologies's stock reaches or exceeds this price by the option expiration date, you would make a profit. The potential return on investment (ROI) for this trade is about 18.23%, assuming Uber Technologies's stock remains unchanged at $69.05 until the expiration date. However, there are risks involved in this trade, such as the possibility of Uber Technologies's stock dropping below the strike price of $90.0 before the option expires, resulting in a loss of your premium paid. Additionally, the volatility of the stock and the underlying market conditions may also affect the performance of your investment. Therefore, this trade should be considered as speculative and not suitable for risk-averse investors.