Most Traders Are Selling Uber Over Tesla's Cyber Cabs. Here's the Other Side.

Tesla cyber cabs are starting to show up on city streets, and the obvious read is that autonomous ride hailing is an existential problem for Uber. The argument here runs the other way. The reasoning is in the unit economics. On a ride today, most of the fare leaves the business to the driver. Strip the driver out and the cost side drops substantially, which means fares can come down and Uber can still keep a similar or better share of a smaller number. Cheaper rides also mean more rides. The condition is that Uber has to lean in and make autonomous vehicles a real part of the fleet rather than fight them. The catch is timing. Rollouts look like a 2027 to 2029 story at the earliest, and there are no listed options that far out. So the structure has to survive a long wait without bleeding capital. That's the trade: a poor man's covered call, also called a call diagonal. Buying 100 shares outright runs about $7,500, or roughly $3,700 on margin. This deep in the money long call runs about $3,000 for exposure to the same 100 shares. Against it, a shorter-dated call is sold to reduce the cost basis while waiting. Two rules he applies to every one of these: buy at least 70 delta on the long option, and pay less than the width of the strikes. Both are covered in the walkthrough, along with the structures he considered first and passed on, including a short put spread against a long call spread and a zebra. --- This content is for educational purposes only and does not constitute financial advice. Options involve risk and are not suitable for all investors. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom Preston's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow #options #trading #investing #finance #stocks #stockmarket #marketanalysis #tradereducation #financialeducation #tastylive tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.