Lyft stock falling

CCW

Active Member
I wanted to sell short lyft stock on day one but all my 3 online discount brokers got 0 share for me to short.

I did ask about the put option. A new stock will usually have its option set up in about 3 months.

After 90 days, I guess everyone can buy the PUT option for this company.

I think Lyft and Uber can be like the "coke and pepsi" on the market.

But I dont think Uber and Lyft will be like Facebook, nor Amazon.

If Lyft can't make money for the next 5 years, its stock price will be more like Blue Apron and buying put options will make a lot of sense.
 

bpm45

Well-Known Member
No one can short the stock at the moment. It takes a few trading days until the stock can be borrowed to sell. Just wait.
 

DRB720

Well-Known Member
Just remember, for those of you old enough, what happened with Palm in Spring 2000. I give this 6 quarters of reporting under GAAP
 

1974toyota

Well-Known Member
If Lyft tanks I wonder if Uber will Have to wait on IPO.
Uber ain't gonna wait, the question is where do they price it at after LYFT has dropped 23$ off its first 2 minute high on fridays open,jmo
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Just remember, for those of you old enough, what happened with Palm in Spring 2000. I give this 6 quarters of reporting under GAAP
i give it 5 yrs. jmo
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I bought on Friday and now I am -10%
ROFLMAO
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I wanted to sell short lyft stock on day one but all my 3 online discount brokers got 0 share for me to short.

I did ask about the put option. A new stock will usually have its option set up in about 3 months.

After 90 days, I guess everyone can buy the PUT option for this company.

I think Lyft and Uber can be like the "coke and pepsi" on the market.

But I dont think Uber and Lyft will be like Facebook, nor Amazon.

If Lyft can't make money for the next 5 years, its stock price will be more like Blue Apron and buying put options will make a lot of sense.
they had a ANAlyst already state he doesn't think LFYFT will make a profit until 2021? JMO
 

1974toyota

Well-Known Member

jerseyboys

Well-Known Member
Look at these Warren Buffet wannabes.

Trade some stocks on Robinhood and they think there are the new Gordon Gekko. hahaha

Lyft isn't going anywhere.
 

Alabama Lou

Well-Known Member
I wanted to sell short lyft stock on day one but all my 3 online discount brokers got 0 share for me to short.

I did ask about the put option. A new stock will usually have its option set up in about 3 months.

After 90 days, I guess everyone can buy the PUT option for this company.

I think Lyft and Uber can be like the "coke and pepsi" on the market.

But I dont think Uber and Lyft will be like Facebook, nor Amazon.

If Lyft can't make money for the next 5 years, its stock price will be more like Blue Apron and buying put options will make a lot of sense.
Best way to make money on Lyft will be playing Options spreads.
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Example: Buy at the money calls with at the money puts before they release first quarterly results. That way when you get the huge move you cash out the winning side and can hold on to the losing side.
Turn $500 into $5000 in a few hours.
This is a much safer approach than holding all long or all short.
Short squeezes and selloffs will be epic in the first year.
 
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1974toyota

Well-Known Member
Best way to make money on Lyft will be playing Options spreads.
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Example: Buy at the money calls with at the money puts before they release first quarterly results. That way when you get the huge move you cash out the winning side and can hold on to the losing side.
Turn $500 into $5000 in a few hours.
This is a much safer approach than holding all long or all short.
Short squeezes and selloffs will be epic in the first year.
OK, except i have NO clue about options, have NO interest in Options, if i play LYFT it will be a day trade at best, but good info,jmo
 

Alabama Lou

Well-Known Member
OK, except i have NO clue about options, have NO interest in Options, if i play LYFT it will be a day trade at best, but good info,jmo
Its easy.

1 Options contract controls 100 shares of the stock. If you wanted to buy 100 shares of Lyft @ $72.00 per share it would cost you
$7200 plus the broker fees.

If you bought 1 Options contract it would cost a fraction of that...maybe $400-$700 depending on how long you had until the Option
expiration date.

So you could take that $7200 that you were going to buy long shares with and instead buy maybe 14 options contracts and you would control 1400 shares.

The only downside to options is expiration. If the price moves against you in the wrong direction you could lose the entire $7200.

Thats why using them the Hedge is a great idea.

The lock up period for some of the Lyft shares is probably around 160-180 days...I dont know. That means they cant sell until 160-180
days pass.

If they want to hedge that position as an insurance policy against falling prices they would just have to purchase put option contracts
when they start trading. That way if the price moves down the put option becomes worth more offsetting the loss on the Locked up long
position.
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Lyft ptions already trading...probably limited to institutional money.

https://www.nasdaq.com/symbol/lyft/option-chain

Puts and Calls look about even in price on the April 12,2019 72.00$ expiration. About 200$ for a put contract and 200$ for a call contract.

If you bought 1 April 12, 2019 expiration call today at @$2.00 it would cost you 200$ ($2.00x100). To make money on this the price would
need to be over $72.00 at expiration, not factoring in the price paid for the option.

Batter up!
 
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1974toyota

Well-Known Member
Its easy.

1 Options contract controls 100 shares of the stock. If you wanted to buy 100 shares of Lyft @ $72.00 per share it would cost you
$7200 plus the broker fees.

If you bought 1 Options contract it would cost a fraction of that...maybe $400-$700 depending on how long you had until the Option
expiration date.

So you could take that $7200 that you were going to buy long shares with and instead buy maybe 14 options contracts and you would control 1400 shares.

The only downside to options is expiration. If the price moves against you in the wrong direction you could lose the entire $7200.

Thats why using them the Hedge is a great idea.

The lock up period for some of the Lyft shares is probably around 160-180 days...I dont know. That means they cant sell until 160-180
days pass.

If they want to hedge that position as an insurance policy against falling prices they would just have to purchase put option contracts
when they start trading. That way if the price moves down the put option becomes worth more offsetting the loss on the Locked up long
position.
Post automatically merged:

Lyft ptions already trading...probably limited to institutional money.

https://www.nasdaq.com/symbol/lyft/option-chain

Puts and Calls look about even in price on the April 12,2019 72.00$ expiration. About 200$ for a put contract and 200$ for a call contract.

If you bought 1 April 12, 2019 expiration call today at @$2.00 it would cost you 200$ ($2.00x100). To make money on this the price would
need to be over $72.00 at expiration, not factoring in the price paid for the option.

Batter up!
OK louie,sounds good by i'll stick to day trading when i don't have a ping,GL
 

Michael1230nj

Well-Known Member
  • Thread Starter Thread Starter
  • #17
What am I missing? Can it really be this easy and obvious? How can anyone believe that Lyft is worth $72.00 a share.
 

Caspita

Well-Known Member
Best way to make money on Lyft will be playing Options spreads.
Post automatically merged:

Example: Buy at the money calls with at the money puts before they release first quarterly results. That way when you get the huge move you cash out the winning side and can hold on to the losing side.
Turn $500 into $5000 in a few hours.
This is a much safer approach than holding all long or all short.
Short squeezes and selloffs will be epic in the first year.
If you mean selling the puts then yeah make sure to leave a little bit of cash to buy the lube you’ll need the day you have you honor your contract and buy those $10-$20 share for $70 lol.. but hey, I guess you can always Uber on to make up for the loses... now if you mean buying both calls and puts well.. money is not free and usually the market makers have a better grasp to where the stock and how much will move and factor that in the premium so it won’t definitely be a cheap trade to get in... the best play if you have no clue is just to stay away! There are definitely way much better and stablished companies with pristine track records where to put your money and be safer. Rather than looking for the big payout just focus on have your money growing over time. That’s how real investors do well. For a chance of a big payout just buy a lottery ticket hehe
 

Alabama Lou

Well-Known Member
If you mean selling the puts then yeah make sure to leave a little bit of cash to buy the lube you’ll need the day you have you honor your contract and buy those $10-$20 share for $70 lol.. but hey, I guess you can always Uber on to make up for the loses... now if you mean buying both calls and puts well.. money is not free and usually the market makers have a better grasp to where the stock and how much will move and factor that in the premium so it won’t definitely be a cheap trade to get in... the best play if you have no clue is just to stay away! There are definitely way much better and stablished companies with pristine track records where to put your money and be safer. Rather than looking for the big payout just focus on have your money growing over time. That’s how real investors do well. For a chance of a big payout just buy a lottery ticket hehe
I was not talking about selling them to open and covered by the stock and running the chance at having them called.

If I was long Lyft Shares they would be hedged with a put contract. I could see a scenario where a large State like California mandates that
Drivers can no longer be considered contractors, and if not California then any state and any regulation! News like this would hit the stocks price HARD. If your not hedged, your just giving your money away. There are way to many risk factors here at work.

Carl Icahn (a money manager I admire), purchased Lyft in early funding round about the time of the last presidential election. He sold his shares at the open of the IPO and made a bunch. Those shares were thought to have been purchased by of all other socialist hacks George Soros and I bet dollars to cop doughnuts that his position is hedged to the gills.

https://www.zerohedge.com/news/2019...ion-lyft-stake-george-soros-ahead-ipo-debacle
 
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