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Dan Nathan On Lyft Earnings, Options

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On CNBC's "Options Action," Dan Nathan shared his view about Lyft Inc's (NASDAQ: LYFT) earnings report, which is scheduled for Tuesday after the market close.

He said the options market is implying a move of around 10 percent in either direction for the event. This means that the at-the-money straddle costs around $6 and traders who expect the stock to make a bigger move than the options market implies could buy the straddle in an attempt to make money.

See Also: Lyft Options Trader Makes Bullish Bet Ahead Of Earnings

Nathan compared performance of other IPO companies after their first earnings report and he showed that Twitter, Inc. (NYSE: TWTR) dropped 24 percent on the event, Snap Inc (NYSE: SNAP) lost 21 percent, Facebook Inc. (NASDAQ: FB) fell 11 percent, while Spotify Technology SA (NYSE: SPOT) dropped 6 percent.

Wall Street analysts have an average price of $73.68 for Lyft's stock, with 15 Buy ratings, eight Holds and two Sell ratings.

Posted-In: CNBC Dan Nathan Options ActionPreviews Options Markets Media Trading Ideas

 

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