DD Forecast + Trading Strategies


Bullish Case: Strong Q2 earnings estimate and positive analyst revisions suggest financial resilience, along with ongoing growth in various segments bolstering long-term prospects.


Bearish Case: Insider selling, ongoing lawsuits, and declining relative likelihood of positive price return in the short term hint at potential dips due to financial instability and market sentiment.


Potential Outcomes:

1. Strong healthcare traction (60%) [Yahoo],

2. Underperformance below $60 (30%) [Yahoo],

3. Market volatility affects price (10%) [Yahoo].


Trading Oracle: Implement a bullish short volatility strategy using near-term put credit spreads due to backwardation, moderate bullish risk, and high call volume. Target 14-day expiry for optimal profitability, leveraging recent mean reversion trends and low IV percentile.


June 30, 2024


DuPont de Nemours Forecast

DD      DuPont de Nemours











Correlated Assets

Assets that tend to move strongly with DD



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.57)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.55)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.29)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)



Uncorrelated Assets

Assets with little price relationship to DD



VFC Forecast + Options Trading Strategies   VFC  VF (-0.29)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.55)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.57)



Anticorrelated Assets

Assets that tend to move strongly against DD



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.57)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.55)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.29)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)





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