AXTI Forecast


Bullish Case: AXTI could benefit from increased demand in 5G and EV sectors, potentially leading to enhanced financial performance. Historical trends suggest significant price recovery potential, with likelihood of high returns over multiple years.


Bearish Case: Ongoing legal challenges and competitive pressures may hinder AXTI's growth, risking further declines in stock value. Recent class action lawsuits undermine investor confidence, with historical volatility casting a shadow over future performance.


Potential Outcomes:

1) Recovery driven by 5G/EV demand (40%).

2) Continuous legal issues and underperformance impact stock (35%).

3) Market downturn exacerbates losses (15%).

4) unexpected technological advancements disrupt industry (10%).


Trading Oracle: Adopt a bullish stance with debit spreads to capitalize on potential upside. Buy AXTI 2024 $4 Calls and sell 2025 $2.50 Puts for a balanced risk profile. Focus on a 6-month horizon, aiming for quick gains while monitoring legal developments closely.


July 24, 2024


AXT Forecast

AXTI      AXT











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



Uncorrelated Assets

Assets with little price relationship to AXTI



LI Forecast + Options Trading Strategies   LI  Li Auto (-0.46)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.53)


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


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.8)



Anticorrelated Assets

Assets that tend to move strongly against AXTI



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.8)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.53)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.46)


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





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