Speculating On CPB Earnings

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NOTE: The options trade recommended in this blog is risky. You could lose all of your money. Only invest a small amount of money if you decided to take the trade.

Apparently I’m in a gambling mood as I prepare to head to Vegas later today for the WPT Wynn Poker World Championship. In addition to the Docusign (DOCU) calls I wrote about last night I’m looking to speculate on Campbell Soup (CPB) earnings as well. I’ve owned CPB for nine months with an average price of $42.25 so it’s been straight up since I bought shares. I see no reason for the trend to end now. CPB has a weak comp as Organic Sales were -4% a year ago as the economy was coming out of the pandemic in a very different economic environment from the current one.

CPB is a slower moving stock than DOCU so we can’t be as aggressive in our strike price. In addition to the shares I own I’m looking to turbocharge my position in CPB heading into earnings Wednesday morning by buying calls. I bought CPB $54 Dec09 Calls for 68 cents. We need about a 3% move from CPB for these calls to be in the money but I don’t see why another good quarter wouldn’t get many investors attention from one of only a few stocks currently at 52 week highs.

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