Uber Stock Cools Off Following Sale of Self-Driving Unit

The stock stands in "overbought" territory

Deputy Editor
Dec 8, 2020 at 10:02 AM
facebook X logo linkedin

Ride share giant Uber Technologies Inc (NYSE:UBER) is down 2.4% at $52.50 in this morning's trading, after the company announced its self-driving unit Advanced Technologies Group (ATG), will be acquired by startup competitor Aurora. With the acquisition set to close in the first quarter of 2021, ATG was given a $10 billion valuation. Meanwhile, Uber will invest $400 million into the startup, and Dara Khosrowshahi, Uber's CEO, will join the company's board. 

As previously mentioned, UBER is catching its breath today, and you need look no further than the equity's 14-day Relative Strength Index (RSI) of 71 to find out why. Uber stock's RIS stands firmly in "overbought" territory, which indicates a short-term breather may have already been in the cards.

Despite the pandemic, UBER has had a fantastic year on the charts. In fact, just yesterday, the equity rose to an all-time high of $54.87, and now boasts a more than respectable, 80.9% lead for 2020. A November bull gap saw the stock propel above the $39 level for the first time ever, and its 20-day moving average guided the stock on its journey higher, even capturing a small dip towards the end of the month.

Lastly, now could be the ideal time to take advantage of the security's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 51% sits in the low 10th percentile of its annual range. This means UBER currently sports attractively priced premiums.



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