This Bullish Trade Can Let Investors Ride Along On Uber Stock

Core Insights - Uber has recently broken out from a cup-with-handle pattern, surpassing a buy point of 97.54, indicating potential for further upside [1] - The company reported a significant increase in gross bookings, up 18% year-over-year, and has authorized a $20 billion buyback program [4] - Analysts forecast a decline in earnings to 69 cents per share for Q3, down from $1.20 in the same quarter last year, despite a projected revenue increase of 19% to $13.24 billion [5] Investment Strategy - Investors can consider a bull call spread by buying a 100 call and selling a 115 call with a Nov. 15 expiration, costing approximately $4.80 per share [2] - The maximum profit from this strategy is calculated at $10.20 per share, or $1,020 for a 100-share contract, if Uber shares trade above 115 at expiration [3] - This options strategy allows for capped risk at the initial debit, making it a suitable approach given Uber's strong performance this year, with a 65% increase [3] Competitive Landscape - Concerns regarding competition from self-driving startups have eased, as Uber has formed strategic partnerships, notably with Waymo [4] - Uber is diversifying its offerings, including a recent partnership with Flytrex to expand Uber Eats into drone delivery [4] - The stock currently holds a Composite Rating of 93 out of a possible 99, ranking fourth in the leisure services group [5]