UBER Volitility Expansion Trade/ Mean Reversion of IV Trade

19 févr. 2020

When looking at UBER, we see that the implied volatility rank is zero, so we would like to see a mean reversion of the IV. When looking at it from a technical/price action perspective we see bullishness, but from a fundamental perspective I'm bearish. So, with that said, we don't want to guess prices yet want to capitalize on the IV expansion in UBER. The way in which we can do this is to do a long iron condor on March 13th expiration, while doing a short iron condor on the February 28th expiration. This trade provides us with a long Vega bias, while being delta neutral, and theta positive. If you want to see a full explanation, I have provided a link to a full video in trade updates below.