Trading Options with an Edge
Select Page

Hawk’s Nest

Unusual Call Buy in Social Travel Small Cap

by | Jul 6, 2022

Membership Collective (MCG) unusual buy of 1250 Dec. $7.50 calls for $1.15. MCG shares down 49% YTD and now just a $1.26B market cap but not a bad business with travel rebounding, trades 10.4X FY23 EBITDA with ample cash and revenues seen rising 75% this year and 26.7% in 2023 with EBITDA growth of 560% and 55.5% respectively. Soho House is experiencing unprecedented membership demand to start 2022 and that the house opening playbook is improving with management now targeting 80 houses by 2027. MCG an interesting small cap here with the unusual call buy.