AVY Forecast


Bullish Case: AVY's diversified markets and strong institutional confidence support a bullish outlook. Historical returns show probable moderate growth over extended periods.


Bearish Case: Competitive pressures and recent flat price action suggest potential stagnation. Elevated implied volatility for near-term OTM puts indicates market fear.


Potential Outcomes: 60% chance for moderate growth driven by diversified markets. 30% chance of stagnation due to competition. 10% chance slight gains/losses from mixed outcomes.


Trading Oracle: Execute a bullish debit spread: Buy Oct 2024, 230 Calls, and Sell Aug 2024, 250 Calls. Implied volatility is low making it appropriate for long volatility strategy. Capitalize on potential positive earnings surprise while hedging risk. Adjust post-Q3 earnings.


July 23, 2024


Avery Dennison Forecast

AVY      Avery Dennison











Correlated Assets

Assets that tend to move strongly with AVY



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.93)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.43)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.71)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.72)



Uncorrelated Assets

Assets with little price relationship to AVY



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.43)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.71)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.72)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.93)



Anticorrelated Assets

Assets that tend to move strongly against AVY



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.93)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.43)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.71)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.72)





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