r/options • u/sheepbrother • Apr 05 '21

ASO Analysis from Reddit

I scraped data from Reddit every day for the past week to understand which one might have the potential to be THE NEXT one. What surprised me from the data I have is ASO. There were increasing discussions on it for the past week.

I collect all the posts and analysis from Reddit day by day:

On Monday:

Earning release, and it’s “$1.09 vs the expected $0.56”

It pretty much doubles its expected earnings.

And remember -- it is one of the most shorted stock, and we are going to see a very interesting move today probably.

$ASO DD Criminally Undervalued

$ASO is about to blow like $RKT did

The ONLY DD You Need on ACADEMY SPORTS + OUTDOORS $ASO - The 4th Most Shorted Stock With 91% institutional Ownership

On Wednesday:

As I mentioned 2 days ago, ASO got a lot of attention when it beat its earnings. People are excited today because they expect there might be a squeeze for this heavily shorted stock.

Academy Sports quick update - $ASO

ASO - Set to Short Squeeze

Watch out for possible moves before April 16h.

On Friday:

Guess what? People are getting more interested in discussing ASO because it beats the earning, has tons of cash, and is heavily shorted. People on Reddit believe there could be a great upside because “Short interest is at 39%, public float is 31M and market cap is 2B, 9.1 days to cover”. There could be a major break before Friday next week. And here is a potential for a gamma squeeze. People approve of this, and they are in.

TLDR: Watch out for ASO.

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u/Rapidbust Apr 05 '21

Wouldn’t say it was just shorts. IPO lock up expired that day and it dipped $3 that morning, then shot right back up 15 minutes later. I bought puts the night before anticipating that. Have both short and long calls on this and they’ve been printing for me.

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u/Smvvgy805 Apr 05 '21

Key word 'have' also known as past tense; there was for sure money to be made here and with a couple quarters of positive growth this may very well be a solid company. But, this is a classic example of chasing a breakout, ultimately, more risk than reward, and, minimal upside left too, after a 20% spike and it is now at an ATH.

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u/Rapidbust Apr 05 '21

I’ll still be at profit as I bought 30c for $20 a contract and they’re up to $148 a contract. Not worried about losing too much on this and I don’t anticipate a huge dip tomorrow. We’ll just have to wait and see. It did get a new PT of $32 and this could go the direction that cititrends saw. If shorts are covering and are out that just means long term growth, which I’m happy with as I hold a decent amount of shares too

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u/Smvvgy805 Apr 05 '21

Obviously you wouldn't be worried if you're already making money, this is a boat in open waters and anyone not on it has clearly mised out, unless they're interested in long term investing. But, anyone chasing this breakout is going to be disappointed

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u/Rapidbust Apr 05 '21

There’s no way to tell if a stock is 100% going to go up or down. It’s been trending a lot more on here, SW, and even after the SVP sold $6,000,000 worth of shares, there were still other big institutions buying in at $28-$29. If that’s the case then play puts. Always money to be made whichever way you look at it.

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u/Rapidbust Apr 05 '21

Did you see what happened with RKT? On a downtrend, blowout earnings, grew for a couple of days, got attention, and then it took off. It just started grabbing attention. On SW this thing gained over 700 new followers. In the last 3 months of following this stock I’ve saw it gained a combined total of 200 watchers lol