Shopping Mall Stock Looking to Build on Recent Gains

Shopping mall stock Simon Property Group Inc (NYSE:SPG) cleared a pivot range between $168.50 and $171.50 from its November-December lows and April-May highs. The security also broke above its 200-day moving average, which previously acted as an area of resistance. What’s more, our data shows that over the past three years the stock averaged a 155% gain after 66% of the instances of instances in which it came within striking distance of this trendline.

 

While shares are now breaking above their year-to-date breakeven, most analysts remain neutral toward SPG. In fact, 10 of the 19 in coverage currently sport a “hold” rating. This leaves plenty of room for potential upgrades moving forward.

Options look affordably priced, making this an excellent time to bet on the equity's next move. This is per Simon Property Group stock’s Schaeffer's Volatility Index (SVI) of 19%, which sits in the low 4th percentile of readings from the past year.

 

Our recommended call has a leverage ratio of 14.68, and will double on a 6.4% rise in the underlying security.