The "Taco Supreme": SPY Calls Update

u/ChickenEntire7702 · Reddit — r/smallstreetbets · January 05, 2026 at 16:23 · ⬆ 9 pts · 💬 4 comments  | View on Reddit ↗
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Author bought SPY Feb 27 '26 $730 calls based on a expected SCOTUS ruling and hyperscaler earnings.

Unpriced research observations (excluded from Calls and Returns):

SPY — LONG The author bought SPY Feb 27 '26 $730 call options expecting the underlying SPY to rise. He cites a potential Supreme Court ruling against Trump that would trigger ~$200 billion in corporate refunds, increasing S&P earnings and removing tariff drag. He also sees low implied volatility expanding on the ruling and hyperscaler earnings carrying SPY toward $730. ambiguous_option_contract

If the ruling goes down against Trump, it likely triggers \~$200 billion in immediate refunds to corporations. This cash hits balance sheets instantly, increasing S&P earnings while simultaneously removing the tariff drag (disinflationary).

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