ARKG Forecast + Trading Strategies


Bullish Case: ARKG's mean-reverting behavior, coupled with strong recent trading volume in call options, suggests a potential upward correction. The volatility surface shows relatively low implied volatility, indicating a buying opportunity as sentiment shifts positively.


Bearish Case: Historically, ARKG has shown a significant longer-term downtrend, and current high implied volatility may signal increased market uncertainty. A lack of sustained price recovery could lead to continued declines in investor confidence.


Potential Outcomes:

1. 30% chance of short-term rally due to positive sentiment.

2. 40% chance of volatility spiking, leading to downward pressure.

3. 20% chance of stabilization around $26.00 with potential for modest growth.

4. 10% chance of significant downturn influenced by worsening market conditions.


Trading Oracle: Consider a bullish position using a put credit spread by selling the $26.0 put and buying the $25.0 put, targeting a 70% probability of profit with high reward-to-risk. This strategy leverages implied volatility premium capture while keeping an eye on market momentum.


July 24, 2024


ARK Investment Management LLC - ARK Genomic Revolution Forecast

ARKG      ARK Investment Management LLC - ARK Genomic Revolution











Correlated Assets

Assets that tend to move strongly with ARKG



VFC Forecast + Options Trading Strategies   VFC  VF (0.71)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.61)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.27)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.41)



Uncorrelated Assets

Assets with little price relationship to ARKG



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.27)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.41)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.61)


VFC Forecast + Options Trading Strategies   VFC  VF (0.71)



Anticorrelated Assets

Assets that tend to move strongly against ARKG



VFC Forecast + Options Trading Strategies   VFC  VF (0.71)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.61)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.27)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.41)





Become a more profitable investor with AI optimized trading strategies






×

Chat with ARKG


 Ask any question about ARKG!