BBWI Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: BBWI’s focus on digital transformation and strong consumer demand, particularly in e-commerce, suggests potential for growth. Historical resilience in revenue and gross margins supports an optimistic outlook.




Bearish Case: Continued high implied volatility and increased put option activity indicate market uncertainty. Risks such as retail crime, macroeconomic pressures, and declining stock price could continue to weigh on BBWI.




Potential Outcomes:
  • Growth in e-commerce: 35% chance; boosts revenue.
  • Macroeconomic downturn: 40% chance; depresses retail.
  • Market stabilization: 25% chance; maintains current levels.




Trading Oracle: Utilize Bearish Long Volatility strategy. Significant implied volatility and high put volumes suggest downside potential. Buying OOTM puts and selling fewer further OOTM puts captures volatility and protects against downside risk.



April 09, 2025


Bath & Body Works Forecast

BBWI        Bath & Body Works











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GT Forecast + Options Trading Strategies   GT  Goodyear Tire & Rubber (0.76)


M Forecast + Options Trading Strategies   M  Macy's (0.73)



Uncorrelated Assets

Assets with little price relationship to BBWI



FLNC Forecast + Options Trading Strategies   FLNC  Fluence Energy (-0.0)


PGJ Forecast + Options Trading Strategies   PGJ  Invesco Golden Dragon China (-0.0)


SAN Forecast + Options Trading Strategies   SAN  Banco Santander (-0.0)


QGEN Forecast + Options Trading Strategies   QGEN  Qiagen (0.0)


IONQ Forecast + Options Trading Strategies   IONQ  IonQ (0.0)



Anticorrelated Assets

Assets that tend to move strongly against BBWI



ICE Forecast + Options Trading Strategies   ICE  Intercontinental Exchange (-0.68)


HIG Forecast + Options Trading Strategies   HIG  Hartford Financial Services (-0.69)


PPC Forecast + Options Trading Strategies   PPC  Pilgrim's Pride (-0.7)


VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.84)


VXX Forecast + Options Trading Strategies   VXX  iPath Series B S&P 500 VIX Short-Term Futures (-0.84)









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