My thoughts, DD on going into $SPG Earnings on Monday via /r/wallstreetbets #stocks #wallstreetbets #investing

My thoughts, DD on going into $SPG Earnings on Monday

$SPG has been rapidly growing since COVID, reaching as high as near $170/share back in November. It has since then been trying to climb back to its highs but struggled to get there, sitting at $145 today. However, if you zoom out and look at the chart, it’s on an upward trend to retest the highs.

If you don’t know about $SPG, the company basically owns a lot of luxury malls. In Q4, if you think about the events, there were Halloween, Thanksgiving and Christmas which a lot of people that were spending less during the first part of COVID were getting back to the mall. Especially with the news of Omicron potentially being the end of COVID or “live with COVID” phase, more people are willing to spend outside for food, clothing and more.

My approach to this upcoming earning on Monday (after-hours) is to go aggressive in buying OTM calls (probably $160 strike price) given that the expiration is not until 2/18. This means that if I’m right and the earning pops, but doesn’t get to $160, I can still profit from increase in stock price. Historically, $SPG earnings has been good thus far.

From my last post of gaining $165K over night, I’m willing to be aggressive with this approach and going to by ~$20K worth of calls at $160 strike price. That gives me roughly 200 contracts. If this works out well, I can easily see a 4 or 5 bagger after earnings. However, of course, the risk is that I’d lose all of it but meh, I’ll make it back doing $SPY swing trades. The better approach would be to profit $20K or more doing $SPY call/put trades so that I can just YOLO the winnings into $SPG earnings.

Anyways, wish me luck and see you on Monday AH!

Submitted February 06, 2022 at 04:21AM by seattle_techie
via reddit