CODI Forecast + Trading Strategies


Bullish Case: CODI's strategic acquisition and strong insider buying signal potential market leadership. A positive earning report could enhance investor confidence and lead to upside as the market recognizes growth potential.


Bearish Case: Market volatility and high debt levels may pressure CODI's stock, limiting upside potential. If earnings miss expectations due to acquisition costs, investor sentiment could decline, driving prices lower.


Potential Outcomes:

1. Earnings growth from acquisitions: 40%

2. Market correction due to volatility: 30%

3. Acquisition fails to generate expected revenue: 20%

4. General economic downturn: 10%. These probabilities reflect recent market trends and previous outcomes.


Trading Oracle: Consider a bullish debit spread due to elevated implied volatility and upcoming price movements. Buy a $24 call, sell a $27 call with a 60-90 day expiry; this targets gains from potential upside while controlling risk amid uncertainty.


July 24, 2024


Compass Diversified Forecast

CODI      Compass Diversified











Correlated Assets

Assets that tend to move strongly with CODI



RS Forecast + Options Trading Strategies   RS  Reliance Steel & Aluminum (0.9)


NAIL Forecast + Options Trading Strategies   NAIL  Direxion Daily Homebuilders & Supplies Bull 3X Shares (0.89)


MAS Forecast + Options Trading Strategies   MAS  Masco (0.89)


ITB Forecast + Options Trading Strategies   ITB  BTC iShares U.S. Home Construction (0.89)


CG Forecast + Options Trading Strategies   CG  Carlyle (0.89)



Uncorrelated Assets

Assets with little price relationship to CODI



FSK Forecast + Options Trading Strategies   FSK  FS KKR (0.0)


BRZE Forecast + Options Trading Strategies   BRZE  Braze (-0.0)


SBAC Forecast + Options Trading Strategies   SBAC  SBA Communications (-0.01)


GT Forecast + Options Trading Strategies   GT  Goodyear Tire & Rubber (-0.01)


AMBA Forecast + Options Trading Strategies   AMBA  Ambarella (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against CODI



DXD Forecast + Options Trading Strategies   DXD  ProShares UltraShort Dow30 (-0.79)


EQNR Forecast + Options Trading Strategies   EQNR  Equinor ASA - (-0.79)


SARK Forecast + Options Trading Strategies   SARK  Tuttle Capital Short Innovation (-0.83)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.85)


RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.86)





Become a more profitable investor with AI optimized trading strategies






×

Chat with CODI


 Ask any question about CODI!