Analysis of DAVE Options Trading and Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy DAVE?
Source: NASDAQ.COM
- Options Selling Risks: Selling puts on DAVE does not provide investors with the same upside potential as owning shares, as the put seller only acquires shares if the contract is exercised, and unless DAVE's stock declines by 43.6%, the only benefit is a 12.9% annualized return from the premium.
- Historical Volatility Analysis: DAVE's historical volatility stands at 84%, and by considering the last 251 trading days' closing prices alongside the current price of $179.23, investors can assess the risk-reward profile of selling the January 2028 puts at a $100 strike price.
- Market Trading Dynamics: As of Friday afternoon, the put volume among S&P 500 components reached 1.33 million contracts, matching call volume, resulting in a put-call ratio of 0.73, indicating a higher demand for puts than the long-term median of 0.65.
- Investor Sentiment Shift: The current higher-than-expected put buying suggests increasing investor concern over DAVE's future stock price decline, which may influence the overall market perception of the stock.
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Analyst Views on DAVE
Wall Street analysts forecast DAVE stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 170.120
Low
274.00
Averages
310.14
High
347.00
Current: 170.120
Low
274.00
Averages
310.14
High
347.00
About DAVE
Dave Inc. specializes in neobanking and financial technology (fintech) services. The Company, through its fully integrated, mobile-first platform, delivers financial products designed to help underserved consumers manage their money more effectively. Its platform and products include ExtraCash and Dave Checking. ExtraCash is a 0% interest overdraft product offered through its bank partner that provides members with access to credit to bridge liquidity gaps between paychecks. Dave Checking is a digital demand deposit account offered through its bank partner with features, no account minimums or corresponding fees, and FDIC pass-through insurance eligibility that protects members from the failure of its bank partner. Dave Checking offers security controls such as multifactor authentication, contactless payment, instant card lock and protection against unauthorized purchases if cards are lost or stolen. Its personal financial management products include Budget, Side Hustle, and Surveys.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of DAVE Options Trading and Risks
- Options Selling Risks: Selling puts on DAVE does not provide investors with the same upside potential as owning shares, as the put seller only acquires shares if the contract is exercised, and unless DAVE's stock declines by 43.6%, the only benefit is a 12.9% annualized return from the premium.
- Historical Volatility Analysis: DAVE's historical volatility stands at 84%, and by considering the last 251 trading days' closing prices alongside the current price of $179.23, investors can assess the risk-reward profile of selling the January 2028 puts at a $100 strike price.
- Market Trading Dynamics: As of Friday afternoon, the put volume among S&P 500 components reached 1.33 million contracts, matching call volume, resulting in a put-call ratio of 0.73, indicating a higher demand for puts than the long-term median of 0.65.
- Investor Sentiment Shift: The current higher-than-expected put buying suggests increasing investor concern over DAVE's future stock price decline, which may influence the overall market perception of the stock.
See More
Dave Expects 60% Revenue Growth in 2025
- Revenue Growth Outlook: Dave anticipates a 62% increase in net operating revenues to $164 million in 2025, reflecting strong market demand and customer growth under its branchless banking model.
- EBITDA Surge: The company expects adjusted EBITDA to jump 118% to $73 million in 2025, showcasing enhanced operational leverage and improved unit economics.
- Sustained Growth Momentum: CEO Jason Wilk highlighted that Q4 marked the third consecutive quarter of over 60% revenue growth, driven by accelerating monthly transacting member growth and continued ARPU expansion.
- Investor Focus: Dave plans to report its finalized Q4 results on March 2, followed by a conference call with investors to elaborate on its growth strategies and future outlook.
See More
Dave Reports Strong Q4 Preliminary Results with 62% Revenue Growth
- Significant Revenue Growth: Dave anticipates a 62% increase in net operating revenues for Q4, reaching $164 million, demonstrating the company's strong performance in the rapidly growing fintech sector and further solidifying its market position.
- Improved Profitability: The expected EBITDA surge of 118% to $73 million reflects the company's success in enhancing operational efficiency and customer value, boosting investor confidence.
- Sustained Growth Momentum: CEO Jason Wilk noted that Q4 marks the third consecutive quarter of over 60% revenue growth, driven by accelerating monthly active user growth and ARPU expansion, indicating robust market demand.
- Optimistic Future Outlook: Management projects net operating revenues of $554 million and adjusted EBITDA of $227 million for 2025, representing growth of 60% and 162% from prior forecasts, showcasing the company's strong growth potential ahead.
See More
U.S. Stocks Rise as Dow Jones Gains Over 700 Points
- Dow Jones Performance: The Dow Jones index rose over 700 points on Friday, indicating a strong market rebound that reflects investor optimism about economic recovery, which could further drive consumer spending and investment.
- Strategic Shares Surge: Strategy shares jumped 14.1% to $122.56 on Friday, signaling a positive market outlook for the company and potentially attracting more investor interest in its future growth prospects.
- Overall Market Trend: The overall rise in U.S. stocks suggests a restoration of investor confidence, which may lead to increased capital inflows into the stock market, thereby promoting economic growth and corporate earnings.
- Market Data Source: This market update is provided by Benzinga APIs, highlighting improved market information transparency that aids investors in making more informed decisions.
See More
Dave Inc. Expects 2025 Revenue and EBITDA to Exceed Guidance
- Financial Performance Exceeds Expectations: Dave Inc. anticipates 2025 GAAP operating revenues to reach $554 million, surpassing previous guidance of $544-$547 million, indicating strong market performance and sustained growth potential.
- Significant EBITDA Growth: The company expects adjusted EBITDA for 2025 to hit $227 million, reflecting a 162% increase from last year, showcasing effective management of fixed costs and unit economics that enhance profitability.
- Improvement in Delinquency Rates: The 28 Days Past Due (28DPD) metric for Q4 is projected to be between 1.95% and 2.00%, better than the prior expectation of below 2.10%, indicating ongoing improvements in credit performance that bolster customer trust and market competitiveness.
- Positive Future Outlook: The company will discuss its financial results for 2025 and outlook for 2026 during a conference call on March 2, 2026, demonstrating management's confidence and commitment to transparency regarding future growth.
See More
Dave Reports Record Q4 Revenues and Strong Annual Growth
- Strong Revenue Performance: Dave reported preliminary Q4 net operating revenues of $164 million and adjusted EBITDA of $73 million, showcasing robust financial growth that solidifies its leadership in the consumer finance sector.
- Annual Performance Breakthrough: For the full year 2025, net operating revenue reached $554 million with adjusted EBITDA of $227 million, marking the strongest year in the company's history and reflecting the sustainability of its business model and strong market demand.
- Sustained Growth Momentum: The company achieved over 60% revenue growth for the third consecutive quarter, driven by accelerating monthly transacting member growth and increased ARPU, indicating strong market appeal and customer retention for its products.
- Positive Future Outlook: Dave plans to release full audited financial results on March 2, 2026, with the market expressing optimism about its future performance, as evidenced by a 10.76% increase in after-hours trading to $172.69, reflecting investor confidence in its growth potential.
See More
Analysis of DAVE Options Trading and Risks
- Options Selling Risks: Selling puts on DAVE does not provide investors with the same upside potential as owning shares, as the put seller only acquires shares if the contract is exercised, and unless DAVE's stock declines by 43.6%, the only benefit is a 12.9% annualized return from the premium.
- Historical Volatility Analysis: DAVE's historical volatility stands at 84%, and by considering the last 251 trading days' closing prices alongside the current price of $179.23, investors can assess the risk-reward profile of selling the January 2028 puts at a $100 strike price.
- Market Trading Dynamics: As of Friday afternoon, the put volume among S&P 500 components reached 1.33 million contracts, matching call volume, resulting in a put-call ratio of 0.73, indicating a higher demand for puts than the long-term median of 0.65.
- Investor Sentiment Shift: The current higher-than-expected put buying suggests increasing investor concern over DAVE's future stock price decline, which may influence the overall market perception of the stock.
See More
Dave Expects 60% Revenue Growth in 2025
- Revenue Growth Outlook: Dave anticipates a 62% increase in net operating revenues to $164 million in 2025, reflecting strong market demand and customer growth under its branchless banking model.
- EBITDA Surge: The company expects adjusted EBITDA to jump 118% to $73 million in 2025, showcasing enhanced operational leverage and improved unit economics.
- Sustained Growth Momentum: CEO Jason Wilk highlighted that Q4 marked the third consecutive quarter of over 60% revenue growth, driven by accelerating monthly transacting member growth and continued ARPU expansion.
- Investor Focus: Dave plans to report its finalized Q4 results on March 2, followed by a conference call with investors to elaborate on its growth strategies and future outlook.
See More
Dave Reports Strong Q4 Preliminary Results with 62% Revenue Growth
- Significant Revenue Growth: Dave anticipates a 62% increase in net operating revenues for Q4, reaching $164 million, demonstrating the company's strong performance in the rapidly growing fintech sector and further solidifying its market position.
- Improved Profitability: The expected EBITDA surge of 118% to $73 million reflects the company's success in enhancing operational efficiency and customer value, boosting investor confidence.
- Sustained Growth Momentum: CEO Jason Wilk noted that Q4 marks the third consecutive quarter of over 60% revenue growth, driven by accelerating monthly active user growth and ARPU expansion, indicating robust market demand.
- Optimistic Future Outlook: Management projects net operating revenues of $554 million and adjusted EBITDA of $227 million for 2025, representing growth of 60% and 162% from prior forecasts, showcasing the company's strong growth potential ahead.
See More
U.S. Stocks Rise as Dow Jones Gains Over 700 Points
- Dow Jones Performance: The Dow Jones index rose over 700 points on Friday, indicating a strong market rebound that reflects investor optimism about economic recovery, which could further drive consumer spending and investment.
- Strategic Shares Surge: Strategy shares jumped 14.1% to $122.56 on Friday, signaling a positive market outlook for the company and potentially attracting more investor interest in its future growth prospects.
- Overall Market Trend: The overall rise in U.S. stocks suggests a restoration of investor confidence, which may lead to increased capital inflows into the stock market, thereby promoting economic growth and corporate earnings.
- Market Data Source: This market update is provided by Benzinga APIs, highlighting improved market information transparency that aids investors in making more informed decisions.
See More
Dave Inc. Expects 2025 Revenue and EBITDA to Exceed Guidance
- Financial Performance Exceeds Expectations: Dave Inc. anticipates 2025 GAAP operating revenues to reach $554 million, surpassing previous guidance of $544-$547 million, indicating strong market performance and sustained growth potential.
- Significant EBITDA Growth: The company expects adjusted EBITDA for 2025 to hit $227 million, reflecting a 162% increase from last year, showcasing effective management of fixed costs and unit economics that enhance profitability.
- Improvement in Delinquency Rates: The 28 Days Past Due (28DPD) metric for Q4 is projected to be between 1.95% and 2.00%, better than the prior expectation of below 2.10%, indicating ongoing improvements in credit performance that bolster customer trust and market competitiveness.
- Positive Future Outlook: The company will discuss its financial results for 2025 and outlook for 2026 during a conference call on March 2, 2026, demonstrating management's confidence and commitment to transparency regarding future growth.
See More
Dave Reports Record Q4 Revenues and Strong Annual Growth
- Strong Revenue Performance: Dave reported preliminary Q4 net operating revenues of $164 million and adjusted EBITDA of $73 million, showcasing robust financial growth that solidifies its leadership in the consumer finance sector.
- Annual Performance Breakthrough: For the full year 2025, net operating revenue reached $554 million with adjusted EBITDA of $227 million, marking the strongest year in the company's history and reflecting the sustainability of its business model and strong market demand.
- Sustained Growth Momentum: The company achieved over 60% revenue growth for the third consecutive quarter, driven by accelerating monthly transacting member growth and increased ARPU, indicating strong market appeal and customer retention for its products.
- Positive Future Outlook: Dave plans to release full audited financial results on March 2, 2026, with the market expressing optimism about its future performance, as evidenced by a 10.76% increase in after-hours trading to $172.69, reflecting investor confidence in its growth potential.
See More
