$LYFT Swing Trade – Low-Cost Call Debit Spread Setup

🚗 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 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.