$LYFT Swing Trade – Low-Cost Call Debit Spread Setup🚗 NASDAQ:LYFT Swing Trade – Low-Cost Call Debit Spread Setup (Jul 18 Exp)
📅 Trade Opened: July 3, 2025, 2:53 PM
🛠 Strategy: Buy to Open (BTO) Call Debit Spread
📈 Strikes: $16.5 / $17.5 (Jul 18 Expiration)
💵 Cost (Premium Paid): $0.25
🎯 Trade Thesis
This swing trade targets a short-term bullish move in NASDAQ:LYFT based on improving fundamentals and favorable technical setup. The structure uses a low-cost OTM call spread to define risk and limit exposure while capturing directional potential.
Catalysts supporting the move:
🚙 Autonomous vehicle rollout beginning this summer (Atlanta) and expanding to Dallas (2026) via Mobileye partnership.
🗳 Activist investor Engine Capital pushing for governance changes and strategic alternatives.
💵 Gross bookings at record levels, with net income and free cash flow turning positive.
📈 Analyst upgrade from TD Cowen with a $21 target (+30% upside from entry).
📊 Technical Setup (Daily Chart)
📉 EMA(4) < EMA(8) < EMA(15): Bearish alignment beginning to flatten – potential compression signal.
⚖ VWAP (30‑day): Price consolidating near long-term VWAP – watching for reclaim.
🔄 MACD: Bullish crossover emerging.
📉 RSI: ~36 – approaching oversold territory, setting up possible reversal.
⏳ Strategy Notes
Position type: OTM vertical call debit spread.
Risk defined: Max loss = $0.25 per contract.
Max gain: $0.75 if LYFT closes at or above $17.5 by expiration.
Timeframe: 2-week swing through July 18, ahead of Q2 earnings (~Aug 6).
🧠 Journal Note
This position aligns with a broader strategy focused on OTM spreads priced under $0.25, using technical compressions and fundamental tailwinds. Trade was opened not on an entry signal day - this avoids front-running momentum shifts.
