DAVA Forecast + Trading Strategies


Bullish Case: DAVA's implied volatility suggests potential upside amidst recent price recovery and investor interest. Analyst ratings and undervaluation per DCF model support potential growth.


Bearish Case: DAVA's short-term outlook remains uncertain due to recent earnings misses, declining institutional support, and high implied volatility gaps, signaling potential further downside.


Potential Outcomes: Price drop (65%), slight rebound post-quarter earnings (20%), significant rebound with EPS improvement (15%). Based on historical and current volatility trends.


Trading Oracle: Initiate a bullish debit spread. Buy 1 $30 call, sell 1 $35 call, expiring in ~90 days. This strategy capitalizes on medium-term implied volatility decline at higher strike prices. Positive reward:risk with high probability-of-profit amid current market sentiment.


June 30, 2024


Endava plc Forecast

DAVA      Endava plc











Correlated Assets

Assets that tend to move strongly with DAVA



VFC Forecast + Options Trading Strategies   VFC  VF (0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.49)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.63)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.76)



Uncorrelated Assets

Assets with little price relationship to DAVA



LI Forecast + Options Trading Strategies   LI  Li Auto (0.49)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.63)


VFC Forecast + Options Trading Strategies   VFC  VF (0.64)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.76)



Anticorrelated Assets

Assets that tend to move strongly against DAVA



VFC Forecast + Options Trading Strategies   VFC  VF (0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.49)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.63)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.76)





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