>>>MY NEW CHALLENGE FOR 2025 — LIVE AT 4 PM ET!<<<
When it comes to generating consistent income in today’s market, selling puts on a stock like Uber (UBER) can be a highly effective strategy — especially if you’re willing to own the shares at a discount.
Let’s break down my recent Uber trade, the math behind it, and why this approach can work for traders looking to generate cash flow while keeping risk in check.
Selling Puts on Uber
I sold both the $60 and $57.50 puts, expiring in March, and collected $314 in total premium.
Here’s the trade: If Uber’s stock price falls below either strike at expiration, I’ll take assignment of the shares. That means I’d own 100 shares at $60 each for one contract, and 100 shares at $57.50 for the other (Uber is trading around $66.50 today).
Now, the key to this trade is understanding break-even.
After factoring in the premium collected, my adjusted ownership cost would be $57.18 per share. That’s a price I’m comfortable with, given Uber’s fundamentals and recent performance.
Why I’m Willing to Own Uber
From a technical and fundamental perspective, Uber has been showing strength. While the stock has seen some volatility, it would need to drop roughly 13.5% from its current level just to hit my adjusted break-even point.
That’s a meaningful cushion.
If the shares are assigned, I can easily pivot to generating more income by then selling covered calls or adding a collar trade. This flexibility allows me to stay in control of the trade while continuously reducing my cost basis.
Let’s be clear — there’s always risk with a put-selling strategy.
If Uber’s stock takes a massive hit, I’ll own the shares at a price higher than the new market level. However, I’m okay with that because I have a plan.
By layering in covered calls or other hedging strategies, I can further mitigate downside risk and continue generating income while waiting for the stock to recover.
On the other hand, if Uber stays above my $60 and $57.50 strikes, I simply keep the premium. That’s $314 in income for this trade, which represents a solid return for tying up a small portion of capital.
The Bigger Picture
This kind of income trade works well in the Consumer Discretionary sector, where names like Uber often trade with volatility that keeps option premiums attractive.
It’s not about predicting where the stock will go — it’s about managing risk and generating consistent returns, regardless of market direction.
If you’re looking for income opportunities in 2025, selling puts on stocks you’d be happy to own is a great place to start. Just make sure to have a plan for what you’ll do if the shares are assigned — whether that’s selling covered calls, adding a protective put, or simply holding for long-term growth.
With Uber, I’m confident in my approach and ready to adapt as the trade develops.
If you want to learn more about how I target $100 a day in extra cash from the market, join me live at 4 p.m. ET today!
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. LIVE AT 4 PM ET: MY $100 2025 CHALLENGE!
I’ll be in the LIVE room at 4 p.m. ET today, Jan. 7, with everyday traders like you, sharing everything they need to know about targeting $100 or more daily in the markets.
You see, my traders and I have been able to target multiple wins every day with an 89.4% win rate.
I’m talking about hitting a hundred bucks like these in extra cash.
And now, I’m giving you the chance to do the same in 2025!
Naturally, there were smaller wins and those that did not work out, and no one can guarantee wins or losses, but if you’d like to see how you can target extra cash every single day — without sitting at your desk to monitor your trades all day…
The profits and performance shown are not typical. We make no future earnings claims, and you may lose money. The trades expressed are from historical back tested data from June 2022 through April 2024 combined with Chris’s live money trading from June 2024 through December 15, 2024 to demonstrate the potential of the system. The average winning trade during the backtested data was 14.3% while the average losing position was 65.3% per trade and an 89.4% win rate.
