ARHS Forecast


Bullish Case: ARHS's smaller store formats exhibit significantly higher visitation volumes, and the steady expansion into the wealthy Californian market could drive revenue growth and stock appreciation.


Bearish Case: Industry-wide sales woes persist due to high interest rates and inflation. The mean-reverting nature of ARHS prices signals potential downside volatility, especially if economic conditions worsen.


Potential Outcomes:

1. Success of smaller store formats (45%).

2. Continued industry softness (30%).

3. Strong fiscal results driving up the stock (15%).

4. Negative market sentiment (10%).


Trading Oracle: Trade a bearish debit spread targeting August 16, 2024 expiry. Buy the August 14.50 Put (65.4% IV) and sell the 17.00 Put (61.5% IV). This leverages ARHS's high implied volatility and potential downside amid economic uncertainty. High reward:risk ratio with defined risk, positioned for mean-reverting action.


July 16, 2024


Arhaus Forecast

ARHS      Arhaus











Correlated Assets

Assets that tend to move strongly with ARHS



VYM Forecast + Options Trading Strategies   VYM  Vanguard High Dividend Yield Indx (0.95)


EWN Forecast + Options Trading Strategies   EWN  BlackRock Institutional Trust Company N.A. - iShares MSCI Netherlands (0.95)


UCTT Forecast + Options Trading Strategies   UCTT  Ultra Clean Hldgs (0.95)


IWD Forecast + Options Trading Strategies   IWD  iShares Russell 1000 Value (0.95)


GBX Forecast + Options Trading Strategies   GBX  Greenbrier Cos. (0.94)



Uncorrelated Assets

Assets with little price relationship to ARHS



MCD Forecast + Options Trading Strategies   MCD  McDonald's (-0.0)


WMG Forecast + Options Trading Strategies   WMG  Warner Music (-0.0)


TYD Forecast + Options Trading Strategies   TYD  Direxion Daily 7-10 Year Treasury Bull 3X Shares (-0.0)


EOG Forecast + Options Trading Strategies   EOG  EOG Resources (0.0)


OBE Forecast + Options Trading Strategies   OBE  Obsidian Energy (0.0)



Anticorrelated Assets

Assets that tend to move strongly against ARHS



RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.91)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.92)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.93)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.93)


SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.93)





Become a more profitable investor with AI optimized trading strategies






×

Chat with ARHS


 Ask any question about ARHS!