Uber Stock Higher After Winning London License

Year-to-date, the equity is still down 18.2%

Deputy Editor
Mar 28, 2022 at 10:30 AM
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Uber Technologies Inc (NYSE:UBER) is in the spotlight this morning, after the rideshare giant won a 30-month license to operate in London, after city regulators revoked its license twice. At last glance, UBER is down 0.6% to trade at $33.85. 

The stock has been climbing since its March 8, 19-month low of $28.28, though it now appears to be struggling to break through its 50-day moving average. Year-to-date, the equity is down 18.2%. 

Analysts are mostly bullish on Uber stock, with 20 of the 23 in coverage carrying a "buy" or better rating. Plus, the 12-month consensus price target of $58.98 is a 71.8% premium to current levels. 

The options pits are of similar sentiment, with 5.18 calls picked up for every put in the last 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 85% of readings from the past year, indicating calls are being picked up at a faster rate than usual. 

These options traders are in luck, as UBER's Schaeffer's Volatility Index (SVI) of 51% sits in the low 21st percentile of its annual range. This suggests options players are pricing in relatively low volatility expectations at the moment. 

 

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