DFS Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Recent regulatory approval for the Capital One merger enhances market confidence and potential credit card business expansion, with low implied volatility suggesting stability.




Bearish Case: Ongoing regulatory scrutiny and merchant restitution from prior issues could affect profitability. Backwardation in options term structure indicates caution.




Potential Outcomes:
  • Merger synergies drive robust growth: 60%
  • Regulatory or legal challenges reemerge, hindering performance: 25%
  • Market-neutral with gradual gains: 15%



May 16, 2025


Discover Financial Services Forecast

DFS        Discover Financial Services











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JPM Forecast + Options Trading Strategies   JPM  JPMorgan Chase (0.96)


RCL Forecast + Options Trading Strategies   RCL  Royal Caribbean (0.94)


BAM Forecast + Options Trading Strategies   BAM  Brookfield Asset (0.94)


RKLB Forecast + Options Trading Strategies   RKLB  Rocket Lab USA (0.94)


ARKF Forecast + Options Trading Strategies   ARKF  ARK Fintech Innovation (0.94)



Uncorrelated Assets

Assets with little price relationship to DFS



FDX Forecast + Options Trading Strategies   FDX  Fedex (0.0)


PLD Forecast + Options Trading Strategies   PLD  Prologis (0.01)


AA Forecast + Options Trading Strategies   AA  Alcoa (-0.02)


KO Forecast + Options Trading Strategies   KO  Coca-Cola (-0.02)


RPD Forecast + Options Trading Strategies   RPD  Rapid7 (0.02)



Anticorrelated Assets

Assets that tend to move strongly against DFS



KHC Forecast + Options Trading Strategies   KHC  Kraft Heinz (-0.8)


STNG Forecast + Options Trading Strategies   STNG  Scorpio Tankers (-0.82)


BCE Forecast + Options Trading Strategies   BCE  BCE (-0.82)


PAGS Forecast + Options Trading Strategies   PAGS  PagSeguro Digital (-0.82)


STM Forecast + Options Trading Strategies   STM  New York Shares (-0.82)









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