DBI Forecast + Trading Strategies


Bullish Case: DBI shows potential for recovery as recent trends indicate improving financials and brand repositioning. Historical mean reversion suggests upward momentum could arise from renewed consumer interest, particularly in the luxury sector.


Bearish Case: Ongoing retail headwinds paired with high competition may pressure DBI's margins. Previous underperformance and current market sentiment indicate risks of further declines, particularly if earnings do not meet expectations.


Potential Outcomes:

1. Earnings beat could lead to a 10% rise (30% chance).

2. In-line earnings might cause a 5% drop (40% chance).

3. Earnings miss could result in a 15% decline (20% chance).

4. Unforeseen retail headwinds could see a 20% drop (10% chance).


Trading Oracle: Consider a bearish strategy using debit spreads, buying the $8 puts and selling the $7 puts, targeting short-term volatility. This approach capitalizes on high implied volatility while providing limited risk, anticipating further downside movement.


July 25, 2024


Designer Brands Forecast

DBI      Designer Brands











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Uncorrelated Assets

Assets with little price relationship to DBI



YOU Forecast + Options Trading Strategies   YOU  Clear Secure (-0.0)


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LW Forecast + Options Trading Strategies   LW  Lamb Weston (0.0)



Anticorrelated Assets

Assets that tend to move strongly against DBI



DAC Forecast + Options Trading Strategies   DAC  Danaos (-0.68)


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HWC Forecast + Options Trading Strategies   HWC  Hancock Whitney (-0.69)


HUT Forecast + Options Trading Strategies   HUT  Hut 8 Mining (-0.71)





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