Back Derivatives Strategy

Add UBER Call Spreads Ahead of Earnings Report Following Sharp Pullback and Positive Quant Team Bias

Published on February 2, 2026

Jeff Jacobson

Last week I worked with the quant team’s proprietary earnings “beat and miss” basket to identify Apple (AAPL) as an attractive upside candidate into earnings. The Feb 20^th call spread we suggested buying is up ~ 60% as AAPL shares have now rallied ~ 4% over that time. This week, I want to highlight UBER as I believe the setup into earnings is very similar to what attracted me to the AAPL idea (sharp pullback/underperformance to a potential support level). See HERE for the Quant team’s full lists for this week’s reporters.

What I also like about UBER upside trades here is that the stock once again is trading near its widest discount to the street’s current 12-month price target (currently ~ 110). The past few times the discount to the street’s view was this wide proved to be a great entry point for the name.

Looking at option pricing, the implied move for UBER on earnings is currently ~ 6.5%. This move seems “fair” given the roughly 6% average move over the last six reports. That being said, I still prefer to go out a bit longer (like we did in AAPL) and look for upside call spreads that offer a nice payout, while also extending the duration of the trade past this week.

Trade:
Buy UBER Feb 20^th $85/$95 call spread for ~ $1.80 (UBER 81.25 ref)

Trade Details:

Buying the upside call spread in UBER ahead of earnings on 2/4 (pre-market)
UBER shares are down 19% from their November highs, and just above the lows hit in both December and early January
Shares now trade at a substantial discount to the $110 12-month price target the street currently has on the name. The past few times it traded at this big of a discount proved to be an attractive entry-point
Call spread that has nearly three weeks of duration and captures earnings starts less than 5% higher and has a 4.5x to 1 max payout on the limited-risk trade
UBER 1-month implied volatility has moved up into earnings (why I prefer the longer-dated call spread over outright calls)
Structure can be added to an existing long equity position, or as an entry-point trade in the name following pullback/underperformance to overall market
Please reach out to me or the 22V sales team for updated pricing and execution capabilities

UBER shares down 19% from their November highs and just above the Dec/Jan lows

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UBER trading at a large discount to the street’s current $110 price target. We saw a significant rally off the Dec ’24 lows last time it traded this wide

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AI-generated content may be incorrect.

Have seen UBER 1-month implied volatility move up sharply into the earnings report
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AI-generated content may be incorrect.

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