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Squeeze 13% Yield From Uber Stock You Already Own
How to Earn Extra Income from Your Uber Shares: A Beginner’s Guide to Covered Calls
What Is This All About?
Imagine you own a rental property. You collect rent every month while you wait for the property value to go up. A covered call works the same way for stocks. You "rent out" your shares to someone else for a fee (called a premium), and you keep that fee no matter what happens.
This article explains how Uber (UBER) shareholders can use this strategy right now to generate real cash income—about 13% annualized—while still keeping some upside potential.
The Current Situation with Uber Stock
Quick Snapshot
- Current Price: ~$70.36 per share
- 52-Week High: ~30% higher than today
- Performance: Underperformed the broader market over the past year
- Shareholder Mood: Frustrated, waiting for ambitious plans to pay off
If this sounds like you, there’s a way to get paid now while you wait.
The Strategy: Selling a Covered Call on Uber
Here’s the specific trade setup being discussed:
The Trade Details
| Component | Details |
|---|---|
| Shares Needed | 100 shares of UBER |
| Current Stock Value | ~$7,036 (100 × $70.36) |
| Option Type | Call Option (you sell the right for someone to buy your shares) |
| Expiration Date | June 17, 2027 (~321 days from now) |
| Strike Price | $80 (about 14% above current price) |
| Premium Collected | ~$795 per contract (upfront, yours to keep) |
| Annualized Yield | ~12.9% on the stock value |
How It Works: Step by Step
1⃣ You Own (or Buy) 100 Shares of Uber
You need 100 shares because each option contract covers exactly 100 shares.
2⃣ You Sell One Call Option
You agree: "If Uber hits $80 by June 17, 2027, you can buy my 100 shares for $80 each."
3⃣ You Collect $795 Cash Immediately
This money hits your account right away. It’s yours to keep—no strings attached.
4⃣ Wait Until Expiration (June 17, 2027)
Two things can happen:
Two Possible Outcomes—You Win Either Way
Outcome A: Uber Stays Below $80
- The option expires worthless (the buyer won’t exercise it)
- You keep: The full $795 premium + all 100 shares
- Your return: ~11% over ~321 days (~13% annualized)
- Next step: You can sell another call and do it again!
Outcome B: Uber Goes Above $80
- Your shares get called away (sold automatically at $80)
- You keep: The $795 premium + $80 × 100 shares = $8,000
- Your total gain: ~$1,759 on $7,036 invested = ~25% total return (~29% annualized)
- The trade-off: You miss out on any gains above $80
Key Insight
This isn’t about predicting the future. It’s about deciding: "Would I be happy selling at $80 for a 25% total return in under a year?" If yes, this trade makes sense.
Why Uber Might Go Higher (The Bull Case)
Before you decide, understand what you might be giving up:
- Gross bookings grew 21% year-over-year last quarter
- Uber One membership: 50+ million members who spend 3× more than regular users
- Autonomous vehicle strategy: Uber aims to be the go-to network for robotaxis—a capital-light way to profit from self-driving tech
- Cross-selling potential: Loyal members = platform to launch new services
Why Uber Might Struggle (The Bear Case)
The stock’s sluggishness reflects real concerns:
- Waymo & dedicated autonomous players are direct competitors
- AI agents from tech giants (Google, Apple, etc.) could intercept customers, turning Uber into a low-margin utility
- These aren’t small risks—they explain why the market hasn’t priced in all the "blue-sky" potential
The Bottom Line: It’s a Pragmatic Choice
This Trade Is NOT A Bet On Uber’s Future Dominance
It’s a practical decision: Are you content locking in a healthy, defined profit at $80?
Watch Uber’s execution on:
- Growing Uber One membership
- Successfully layering new services on top
- Proving its ecosystem is a durable advantage
If those happen, the stock could soar past $80—and you’d miss that extra upside. But you’d still walk away with a 29% annualized return. Not bad for "income while you wait."
Tools to Find Similar Trades on Your Own Stocks
Don’t own Uber? No problem. You probably own something that could pay you.
Covered Call Finder
Type in any stock (or several) and instantly see:
- How much income a covered call could generate
- A slider to adjust the strike price → balance income vs. upside
- Quickest way to see what your portfolio could pay
Where This Fits in a Bigger Plan
A covered call turns one stock into income. But durable wealth comes from diversification.
Trefis High Quality (HQ) Portfolio
- ~30 high-quality businesses across sectors
- Chosen on full fundamentals, not single setups
- Sized and rebalanced with discipline
- Track record: Outpaces a benchmark blending S&P 500, S&P Mid-cap, and Russell 2000
The smart approach: Build a diversified core with the HQ Portfolio, then write covered calls on individual names you like for extra income.
Explore the Trefis HQ Portfolio
Summary
| What You Get | What You Give Up |
|---|---|
| $795 cash upfront (12.9% annualized yield) | Gains above $80/share |
| Keep shares if UBER < $80 — sell another call later | Slight downside cushion only |
| 25% total return (~29% annualized) if UBER > $80 | Must sell at $80 even if stock hits $100 |
| Income while you wait for long-term thesis to play out | Opportunity cost if stock soars |
The decision is simple: Would you be happy selling Uber at $80 for a ~29% annualized return? If yes, this covered call is a smart, conservative way to get paid while you wait.
FAQ
Do I need to be an options expert to do this?
No. Most brokers (Fidelity, Schwab, Robinhood, etc.) let you sell covered calls with a few clicks. You just need:
- 100 shares of the stock
- Options trading approval (usually Level 1 or "Covered Calls")
- The ticker, expiration, and strike price
What happens if Uber crashes below $60?
You still keep the $795 premium, which softens the blow a little. But you still own the shares and they lose value. This strategy doesn’t protect against big drops—it just gives you income while holding.
Can I get out of the trade early?
Yes. You can buy back the call option anytime before expiration. The price will depend on Uber’s stock price and time remaining. If the stock surges, buying it back will cost more than the $795 you collected.
Is the $795 premium taxable?
Yes. In a taxable account, the premium is typically treated as short-term capital gain if the option expires or is bought back. If shares are called away, it adjusts your cost basis. Consult a tax pro for your situation.
Why June 2027 and $80 strike? Why not sooner/higher/lower?
This specific combo balances:
- Time premium (longer = more income)
- Upside room ($80 = 14% above current price)
- Annualized yield (~13%)
The Covered Call Finder tool lets you slide these variables to match your goals—more income (lower strike, sooner expiry) or more upside (higher strike, later expiry).
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Options involve risk and are not suitable for all investors. Consult a financial advisor before trading.
