CARS Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: CARS capitalizes on renewed car demand and efficient monetization strategies. The current undervalued implied volatility presents profitable upside potential given the historical mean-reverting nature of its price action.




Bearish Case: Growing competition from EV platforms and significant put option volume suggest downside pressure. CARS faces challenges in maintaining market share and adapting to emergent buyer trends.




Potential Outcomes:

1. 40% - Moderate growth due to new partnerships.

2. 35% - Market share loss from EV competition.

3. 25% - Macroeconomic disruptions influencing price negatively.




Trading Oracle: Adopt a bullish debit spread strategy. Buy ITM calls at $17.5, sell OTM calls at $20, targeting a medium-term outlook (~90 days). This maximizes the upside given the mean-reverting nature and recovering implied volatility.



February 25, 2025


Cars.com Forecast

CARS        Cars.com











Correlated Assets

Assets that tend to move strongly with CARS



ESTC Forecast + Options Trading Strategies   ESTC  Elastic (0.6)


AMC Forecast + Options Trading Strategies   AMC  AMC Entertainment (0.57)


INDI Forecast + Options Trading Strategies   INDI  Indie Semiconductor (0.53)


PLTK Forecast + Options Trading Strategies   PLTK  Playtika (0.52)


SNPS Forecast + Options Trading Strategies   SNPS  Synopsys (0.52)



Uncorrelated Assets

Assets with little price relationship to CARS



SU Forecast + Options Trading Strategies   SU  Suncor Energy (-0.0)


JDST Forecast + Options Trading Strategies   JDST  Direxion Daily Junior Gold Miners Index Be (-0.0)


ORI Forecast + Options Trading Strategies   ORI  Old Republic International (-0.0)


TSN Forecast + Options Trading Strategies   TSN  Tyson Foods (0.0)


COOP Forecast + Options Trading Strategies   COOP  Mr. Cooper (0.0)



Anticorrelated Assets

Assets that tend to move strongly against CARS



JBLU Forecast + Options Trading Strategies   JBLU  Jetblue Airways (-0.39)


EH Forecast + Options Trading Strategies   EH  EHang Holdings Ltd - (-0.41)


VXX Forecast + Options Trading Strategies   VXX  iPath Series B S&P 500 VIX Short-Term Futures (-0.44)


MCD Forecast + Options Trading Strategies   MCD  McDonald's (-0.46)


PTLO Forecast + Options Trading Strategies   PTLO  Portillos (-0.52)









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