A Possible Gain of 80% Could Be Within Reach...READ MORE
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A Possible Gain of 80% Could Be Within Reach
It was a widely covered story that many traders are aware of. Uber completed its initial public offering on Friday. At the end of last year, the deal was expected to value the company at as much as $120 billion but those estimates proved to be overly optimistic.
A little-known California company has built a profound new platform that some of our top investors believe is positioning them to dominate the second wave of the cord-cutting revolution.
Uber faced a number of headwinds. The stock market was struggling with news about a possible trade war with China. The news, and confusion related to the situation, sparked a sell off and on Friday the S&P 500 was more than 4% below its highs.
Uber also may have been held back by following in the steps of its rival, Lyft, which completed its IPO just weeks before. That offering also disappointed investors and LYFT continues to struggle. Of course, it should be noted that Uber and Lyft are both losing money. It's simply possible that investors are not willing to pay a premium for the hope that the companies can be profitable one day.
It might be too soon to trade Uber but, as we explain in our latest article, there is a way to place a short term trade tied to the prospects for the ride hailing service. It's in Lyft and uses a relatively basic options strategy designed to limit the risks.
We have all the details of that trade in our latest free educational article that is available right here.
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