Here's How To Potentially Buy Uber Stock At A Discount

Uber Technologies (UBER) stock is one of the most popular stocks with options despite being down 25% in the last six months. Now, you can use options to potentially buy Uber stock at even more of a discount.

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								What Is A Cash-Secured Put?
							

							

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						What Is A Cash-Secured Put?

Let’s say you have $7,500 that you want to invest into Uber stock. You could simply buy 100 shares and hope the stock rises.

But if you want a more conservative play that generates income, you could sell a Sept. 18 put with a strike price of 70. You would set aside just $7,000 in case you’re assigned 100 shares on the short put. If that happens, not only did you save $500 in your purchase, you also gain $600 in option premium in just over six months. That puts your outlay for owning Uber at nearly a 15% discount.

What if Uber never trades below the 70 strike price? Then you keep the $600 when the option expires worthless. Your $7,000 allocation to Uber generates a potential annualized return of 16.8%.

What about the downside? Well, much like owning Uber shares, if the stock keeps dropping, the sold put will lose money in the short-term. If you are assigned the shares, you will have the risk of any stock position with a potential loss of $6,400 in the unlikely event that Uber went to 0. Even that is better than the alternative of losing $7,500 from buying shares outright and in both cases, a stop loss should get you out long before then.

If Uber is below 70 in September, then the put seller will be forced to buy 100 shares at 70 and get the 15% discount with the premium received. But if Uber stays above 70, then the trade achieves a 16.8% per annum return if the put expires worthless.

Limited Gains On Uber Stock

Cash-secured puts are a bullish strategy. But they’re considered slightly less bullish than owning Uber stock because the potential gains are limited to the premium received.

The 70 strike put currently has a delta of 37, so selling this put gives an exposure roughly equivalent to owning 37 shares of Uber Technologies stock, although this will change as the stock moves up and down. It also means the put has a roughly 63% chance of expiring worthless.

One method which can help cut the risk is to turn it into a spread and buy a 60 strike put. This turns the trade into a bull put spread. If Uber blew through 70 and kept dropping, your loss would be capped once it crossed below 60. But, it would eat into your premium received a little.

Cash-secured puts are one of my favorite strategies for generating income on stocks I’m willing to own if they drop.

One downside to this idea, however, is that Uber stock has poor ratings on the Investor’s Business Daily checklist.

Where The Stock Ranks

IBD gives Uber stock a Composite Rating of 36 out of a best-possible 99, an Earnings Per Share Rating of 34 and a Relative Strength Rating of 21. According to IBD Stock Checkup, Uber ranks 25th in the Leisure-Services group. The group ranks 85th out of the 197 industries followed by IBD.

Uber is a global mobility and delivery platform that spans ride‑hailing, food delivery, freight, and emerging services like autonomous vehicles, operating across more than 70 countries and over 10,000 cities worldwide.

Recent developments include Uber’s partnership with Joby Aviation (JOBY) to launch electric air taxis in Dubai in 2026, allowing users to book short‑range eVTOL flights directly through the Uber app.

It’s important to remember that options are risky and investors can lose 100% of their investment.

Gavin McMaster has a masters in applied finance and investment. Follow him on X/Twitter at @OptiontradinIQ.

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