This is a news article about a company called Upstart Hldgs. It talks about how people can make money by trading options, which are special contracts that give you the right to buy or sell something at a certain price and time. The article also mentions some experts who think the stock of this company will go up in value, so they have set a target price of $28 for it. If you want to follow these trades and get updates on them, you can use a service called Benzinga Pro. Read from source...
1. The title of the article is misleading and clickbait-like, implying that there is a closer look at some hidden or novel aspects of Upstart Hldgs's options market dynamics, when in fact the article is just a summary of recent analyst ratings and news articles with no original analysis or insight.
2. The article uses vague and ambiguous terms like "options trades" and "analyst color" without defining them or explaining how they relate to Upstart Hldgs's stock performance and valuation. This makes the article inaccessible and confusing for non-expert readers who might be interested in learning more about options trading and the company.
3. The article does not provide any context or background information on Upstart Hldgs, such as its business model, competitive advantage, financial results, or growth prospects. This makes it hard for readers to assess the relevance and reliability of the analyst ratings and news articles cited in the article.
4. The article does not disclose any potential conflicts of interest or biases of the sources used in the article, such as whether they are paid by Upstart Hldgs or have a stake in the company's success or failure. This makes it hard for readers to judge the credibility and objectivity of the information presented in the article.
5. The article does not present any data or evidence to support the claims made by the analyst ratings and news articles, such as why they have a positive or negative outlook on Upstart Hldgs's stock price and options market dynamics. This makes it hard for readers to verify the accuracy and validity of the information presented in the article.
6. The article does not provide any suggestions or recommendations for readers who want to invest in Upstart Hldgs, such as which options to buy or sell, how much to risk, when to exit, etc. This makes it a passive and incomplete piece of content that does not help readers achieve their financial goals or learn more about options trading and the company.
1. Buy UPST calls with a strike price of $28 expiring in June 2023, as the stock is undervalued and has strong growth potential. The call option gives you the right to buy UPST at $28 until the expiration date, which is the third Friday of June 2023. If UPST reaches or exceeds $28 by the expiration date, your call option will be worth $10 per share, resulting in a 35.7% return on investment (ROI). The risk is limited to the premium paid for the call option, which is currently around $4 per contract. You can also adjust your position by buying or selling additional call options with different strike prices and expiration dates, such as $30 calls expiring in July 2023, or $25 calls expiring in June 2023. This way, you can benefit from a larger price move of UPST, while still limiting your downside risk.
2. Sell UPST puts with a strike price of $18 expiring in June 2023, as the stock is overbought and has limited upside potential. The put option gives you the right to sell UPST at $18 until the expiration date, which is the third Friday of June 2023. If UPST falls below $18 by the expiration date, your put option will be worth $5 per share, resulting in a 27.8% ROI. The risk is limited to the premium received for the put option, which is currently around $2 per contract. You can also adjust your position by buying or selling additional put options with different strike prices and expiration dates, such as $15 puts expiring in July 2023, or $20 puts expiring in June 2023. This way, you can benefit from a larger price drop of UPST, while still limiting your upside risk.