Uber, Lyft Options Investors Buckle Up for a Wild Ride

Uber, Lyft Options Investors Buckle Up for a Wild Ride

Assessment

Interactive Video

Business

University

Hard

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The video discusses the financial challenges faced by Lyft and Uber, focusing on their burn rates and the impact of raising prices. It highlights the significant financial losses both companies are experiencing, with Lyft's operating profit loss at $377 million and Uber's at nearly $5 billion, including IPO costs. The video also covers the volatility in options pricing, with a notable 11% swing expected after earnings reports. Investor sentiment is analyzed through Uber's put-call ratio, indicating increased hedging activity as the companies approach their earnings reports.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern for Lyft and Uber this quarter?

Increasing their market share

Reducing their burn rates

Expanding into new markets

Improving customer service

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected operating profit loss for Uber in the third quarter?

500 million

1 billion

5 billion

377 million

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much swing are options pricing in for Lyft and Uber after earnings reports?

7.8%

11%

5%

15%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Compared to the average Russell 1000 company, how is the premium for Lyft and Uber's price volatility described?

Negligible

Rich

Similar

Lower

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a green put-call ratio indicate about investor sentiment?

Neutral sentiment

More bearish options open interest

Increased trading volume

More bullish options open interest