ARKG Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: Optimism towards gene-editing breakthroughs and potential FDA approvals can drive short-term rallies, supported by increasing bullish sentiment and technical indicators.




Bearish Case: Persistent high volatility and heavy put option volume suggest continued investor uncertainty, compounded by historical performance declines and regulatory challenges.




Potential Outcomes:
  1. 30% chance of a rebound due to breakthrough news.
  2. 40% likelihood of continued volatility causing declines.
  3. 30% potential for stabilization if sentiment improves.




Trading Oracle: Consider a bullish short volatility strategy. Sell $26.5 put and buy $25 put with ~7 days to expiration. This strategy has a 74% probability of profit and captures premium decay. The reward:risk is favorable, leveraging implied volatility insights. High edge and potential annualized returns at 194%.



January 26, 2025


ARK Investment Management LLC - ARK Genomic Revolution Forecast

ARKG        ARK Investment Management LLC - ARK Genomic Revolution











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