DGII Forecast


Bullish Case: DGII benefits from favorable moving average trends, expected earnings growth of 85%, and strong historical returns for longer holding periods.


Bearish Case: High P/E ratio and significant insider selling suggest potential overvaluation. Recent downgrades and mean-reverting price action also indicate downside risk.


Potential Outcomes:

1. 30% chance of sharp price recovery driven by strong earnings (supported by historical return trends).

2. 50% chance of moderate decline due to mean reversion and insider selling.

3. 20% chance of flat trading due to mixed signals.


Trading Oracle: Establish a 1-2 month timeframe bear call spread with a short call option at $27 and a long call option at $30. This strategy leverages Helium's higher volatility and mean-reverting price action, offering a high reward-to-risk ratio and positive edge.


July 17, 2024


Digi International Forecast

DGII      Digi International











Correlated Assets

Assets that tend to move strongly with DGII



LI Forecast + Options Trading Strategies   LI  Li Auto (0.43)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.35)


VFC Forecast + Options Trading Strategies   VFC  VF (0.28)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.1)



Uncorrelated Assets

Assets with little price relationship to DGII



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.1)


VFC Forecast + Options Trading Strategies   VFC  VF (0.28)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.35)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.43)



Anticorrelated Assets

Assets that tend to move strongly against DGII



LI Forecast + Options Trading Strategies   LI  Li Auto (0.43)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.35)


VFC Forecast + Options Trading Strategies   VFC  VF (0.28)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.1)





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