ABG Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: ABG's acquisition of Herb Chambers could drive revenue growth and operational synergies. The elevated call option volume suggests bullish sentiment.




Bearish Case: High implied volatility and potential economic headwinds pose risk, especially if macro conditions worsen unexpectedly.




Potential Outcomes: Economic recovery and automotive demand boost ABG 15% (70%); macro risks and stagnation lead to 10% decline (25%); unforeseen events cause flat trading (5%).




Trading Oracle: Implement a bullish debit spread, buying the April 2025 $290 call and selling the April 2025 $300 call. This targets near-term upward momentum. Manage risk with strong reward-to-risk potential; exploit current implied volatility difference for a positive edge.



February 22, 2025


Asbury Automotive Forecast

ABG        Asbury Automotive











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Assets that tend to move strongly with ABG



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WRBY Forecast + Options Trading Strategies   WRBY  Warby Parker (0.83)


JPM Forecast + Options Trading Strategies   JPM  JPMorgan Chase (0.81)


ORI Forecast + Options Trading Strategies   ORI  Old Republic International (0.8)


ZION Forecast + Options Trading Strategies   ZION  Zions Bancorporation N.A (0.8)



Uncorrelated Assets

Assets with little price relationship to ABG



KRP Forecast + Options Trading Strategies   KRP  Kimbell Royalty Partners (-0.0)


XLV Forecast + Options Trading Strategies   XLV  Health Care Select Sector SPDR (0.0)


ITB Forecast + Options Trading Strategies   ITB  BTC iShares U.S. Home Construction (-0.0)


DNN Forecast + Options Trading Strategies   DNN  Denison Mines (-0.0)


FSLR Forecast + Options Trading Strategies   FSLR  First Solar (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against ABG



BRKR Forecast + Options Trading Strategies   BRKR  Bruker (-0.71)


XP Forecast + Options Trading Strategies   XP  XP (-0.71)


BGS Forecast + Options Trading Strategies   BGS  B&G Foods (-0.74)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.76)


CRI Forecast + Options Trading Strategies   CRI  Carters (-0.78)









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