DFS Forecast + Trading Strategies


Bullish Case: DFS's institutional support and recent price recovery bode well. Peel-back in implied volatility suggests potential price stability leading to controlled growth.


Bearish Case: Implied volatility discrepancies highlight potential downside exposure. Recent regulatory challenges and increased downside risk from legal proceedings could affect DFS negatively.


Potential Outcomes:

1. Continued growth (65%).

2. Struggles due to regulatory scrutiny (30%).

3. Market neutrality with slight variations (5%).


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July 16, 2024


Discover Financial Services Forecast

DFS      Discover Financial Services











Correlated Assets

Assets that tend to move strongly with DFS



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.91)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.52)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.63)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.68)



Uncorrelated Assets

Assets with little price relationship to DFS



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.52)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.63)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.68)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.91)



Anticorrelated Assets

Assets that tend to move strongly against DFS



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.91)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.52)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.63)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.68)





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