DAN Forecast


Bullish Case: Dana may benefit from stabilized auto parts market with the potential for selective growth in core business areas and recent strategic decisions bolstering long-term performance.


Bearish Case: Recent implied volatility and historical return data suggest high uncertainty and risk. Operational inefficiencies, geopolitical tensions, or macroeconomic downturns could further depress prices.


Potential Outcomes:

1. Increased demand leads to stock stabilization (40%).

2. Market downturn exacerbates Dana's weaknesses (30%).

3. No significant change, maintaining current levels (30%).


Trading Oracle: Execute a September 2024 credit spread strategy. Sell DAN $15 Call and buy DAN $16 Call. Leveraging high volatility ensures positive edge, balanced risk-reward, and high probability of profit. Ideal for a ~3-month outlook anticipates price stability or slight upside.


July 21, 2024


Dana Forecast

DAN      Dana











Correlated Assets

Assets that tend to move strongly with DAN



VFC Forecast + Options Trading Strategies   VFC  VF (0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.4)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.26)



Uncorrelated Assets

Assets with little price relationship to DAN



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.26)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.4)


VFC Forecast + Options Trading Strategies   VFC  VF (0.64)



Anticorrelated Assets

Assets that tend to move strongly against DAN



VFC Forecast + Options Trading Strategies   VFC  VF (0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.4)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.26)





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