Lyft Stock in the Red Amid California Court Drama

A California court ruling gave Lyft some time to classify its drivers

Deputy Editor
Aug 21, 2020 at 11:37 AM
facebook X logo linkedin


The shares of Lyft Inc (NASDAQ:LYFT) are down 1.7% at $29.27 today, after the ride-sharing staple won an emergency stay ruling from a California appeals court. The ruling extended the time required for ride-sharing apps such as Lyft and rival Uber Technologies (UBER) to classify their drivers as employees rather than contractors. Lyft planned to cease its services in the state if they failed to lock down an emergency stay regarding their filing in the appeals court.

Lyft stock dipped to a three-month low of $25.74 yesterday while the court decision was still in progress. Back in early June, the round $40 level turned away a rally, with LYFT trading sideways between the $32 and $26.50 area over the last two summer months. Year-to-date, the equity has shaved off 31.7%, and is facing stiff pressure from its 40-day moving average.

LYFT Chart August 21

Puts have been growing in popularity. Lyft stock's 10-day put/call volume ratio of 0.99 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), sits in the 75th percentile of readings from the past year. So while calls still just barely outnumber puts on an absolute basis, the high ratio indicates the rate of put buying relative to call buying has been accelerated.

Regardless of direction, LYFT also sports a Schaeffer’s Volatility Index (SVI) of 62%, which sits in the 15th percentile of its annual range. This suggests options have been pricing in relatively low volatility expectations right now -- a boon for premium buyers.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI