Monday, September 28, 2026

Covered Calls Position Established in Uber Technologies Inc.

During the first half hour in this morning's trading session, my in-the-money Covered Calls net-debit limit order was transacted and 300 shares of Uber Technologies Inc. (ticker symbol UBER) stock were purchased at $67.91 and 3 October 16th, 2026 $66.00 Call options were sold at $3.29 per share -- a net debit of $64.62 ($67.91 - $3.29) per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $1.38 per share [$3.29 Call options premium - ($67.91 stock purchase price - $66.00 strike price)]. The probability that the stock will be in-the-money and therefore assigned on its options expiration date was 63.3% when this order was transacted.

As preferred, the next quarterly earnings report on November 3rd, 2026 is after the October 16th options expiration date.  Also as shown below, Uber appeared on my Quality+Growth stock screener by passing all criteria therein (including that the average Wall Street analysts' target price which is +50.5% above today's stock purchase price):
  
As detailed below, a potential outcome for this Uber Technologies investment is +2.1% absolute return-on-investment for the next 18 days (equivalent to +43.1% annualized-return-on-investment) if the stock closes above the $66.00 strike price on the October 16th, 2026 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position
The net-debit buy/write limit order was executed as follows:
9/28/2026 Bought 300 shares of Uber Technologies Inc. stock @ $67.91 per share.  
9/28/2026 Sold 3 Uber October 16th, 2026 $66.00 Call options @ $3.29 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 36.1 when this position was established which, as preferred, is well above the current VIX of 15.9.  

A possible overall performance result (including commissions) if this position is assigned on its 10/16/2026 options expiration date is as follows:
Covered Calls Net Investment: $19,388.01
= ($67.91 - $3.29) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$984.99
= ($3.29 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $66.00 strike price at the 10/16/2026 options expiration date): -$573.00
= ($66.00 - $67.91) * 300 shares

Potential Total Net Profit (If assigned at expiration): +$411.99
= (+$984.99 options income + $0.00 dividend income - $573.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.1%
= +$411.99/$19,388.01
Potential Equivalent Annualized-Return-on-Investment: +43.1%
= (+$411.99/$19,388.01) * (365/18 days)