AAP Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: Improving inventory management and strategic initiatives could boost AAP's market share, leveraging flat volatility expectations to capitalize on growth potential.




Bearish Case: Continued store closures and high implied volatility suggest prolonged economic struggles, limiting recovery prospects and maintaining downward pressure.




Potential Outcomes:
  • Continued financial pressure from store closures (50%).
  • Strategic initiatives improve margins (30%).
  • Market volatility leads to unexpected downside (20%).




Trading Oracle: Sell short-term bearish credit spreads focusing on March expirations. Exploit high implied volatility and bearish sentiment by targeting slightly out-of-the-money calls near $50. This approach offers a favorable risk-reward ratio while positioning for potential volatility decreases.



February 08, 2025


Advance Auto Parts Forecast

AAP        Advance Auto Parts











Correlated Assets

Assets that tend to move strongly with AAP



WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (0.89)


APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (0.87)


BP Forecast + Options Trading Strategies   BP  BP (0.86)


ETSY Forecast + Options Trading Strategies   ETSY  Etsy (0.86)


BBWI Forecast + Options Trading Strategies   BBWI  Bath & Body Works (0.84)



Uncorrelated Assets

Assets with little price relationship to AAP



REYN Forecast + Options Trading Strategies   REYN  Reynolds Consumer Products (-0.0)


ROOT Forecast + Options Trading Strategies   ROOT  Root (-0.01)


PLBY Forecast + Options Trading Strategies   PLBY  PLBY (0.02)


ODFL Forecast + Options Trading Strategies   ODFL  Old Dominion Freight Line (0.02)


MCK Forecast + Options Trading Strategies   MCK  Mckesson (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against AAP



RY Forecast + Options Trading Strategies   RY  Royal Bank Of Canada (-0.87)


INSG Forecast + Options Trading Strategies   INSG  Inseego (-0.88)


CHRW Forecast + Options Trading Strategies   CHRW  C.H. Robinson Worldwide (-0.88)


SO Forecast + Options Trading Strategies   SO  Southern (-0.89)


AFL Forecast + Options Trading Strategies   AFL  Aflac (-0.9)









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