ACT Forecast


Bullish Case: Enact's mean-reverting price action signifies resilience. The historical data showcases potential for positive returns, bolstered by legislative clarity and strong financial performance.


Bearish Case: High implied volatility and legislative uncertainties, particularly around AI and vehicle emissions regulations, pose significant downside risks. Past returns demonstrate notable likelihood of losses at higher holding periods.


Potential Outcomes: 70% chance of resilience due to robust financials and legislative wins. 20% chance regulatory uncertainties dampen growth. 10% chance negative impact from high volatility and interest rates.


Trading Oracle: Trade bullish long volatility debit spreads targeting 3-6 months. Implied volatility suggests high rewards. Anticipate legislative clarity and shareholder confidence to boost returns. Mean-reverting behavior supports robust trading edge.


July 20, 2024


Enact Forecast

ACT      Enact











Correlated Assets

Assets that tend to move strongly with ACT



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.77)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.65)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.55)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.6)



Uncorrelated Assets

Assets with little price relationship to ACT



VFC Forecast + Options Trading Strategies   VFC  VF (-0.55)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.6)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.65)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.77)



Anticorrelated Assets

Assets that tend to move strongly against ACT



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.77)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.65)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.55)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.6)





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