Lyft (LYFT) is rallying today but remains below the strike price of our call. Uber’s (UBER) recent woes have not shifted investor interest into shares of competitor Lyft, and inflationary pressures are likely to continue to weigh on these stocks.
I do not expect a meaningful bounce in the coming weeks. Therefore, after watching our LYFT call expire worthless today, I plan to recommend selling our shares next week. While we will book a large loss on the position, LYFT is dead money, and our capital can be put to better use elsewhere.
Sunrun (RUN) is down sharply today with other solar stocks after Sen. Joe Manchin said he would not support Democrats’ spending bill if it increased funding for climate change provisions.
Our RUN call is on track to expire worthless. We will wait to see if shares experience a reflexive bounce before selling another one.
LYFT July Monthly (7/15) 13.50 Call
Current Stock Price: $12.53
Cost Basis: $20.47
Action: Watch call expire worthless
Potential Rate of Return: I expect to take a loss on this position next week
RUN Jul Monthly (7/15) 25 Call
Current Stock Price: $23.18
Cost Basis: $43.51
Action: Watch call expire worthless
Potential Rate of Return: I am targeting breakeven for this position