DHT Forecast + Trading Strategies


Bullish Case: DHT's historical mean reversion patterns, robust book value, and favorable low implied volatility all signal potential short-term upward movement.


Bearish Case: Macro uncertainties, profit-taking tendencies, and historical evidence of periodic pullbacks pose a significant risk of downside corrections.


Potential Outcomes:

1. Mean reversion leads to steady increases (60%).

2. Macro uncertainty causes pullback (25%).

3. Positive news triggers sudden spike (10%).

4. Stagnation, minimal change (5%).


Trading Oracle: Execute call debit spreads with October 2024 expiry. Buy $12 calls, sell $13 calls. Leverage current low implied volatility and positive historical mean reversion patterns. Target high reward-to-risk ratio, significant positive edge, and a robust probability-of-profit.


July 23, 2024










Correlated Assets

Assets that tend to move strongly with DHT



FRO Forecast + Options Trading Strategies   FRO  Frontline (0.96)


STNG Forecast + Options Trading Strategies   STNG  Scorpio Tankers (0.94)


TNK Forecast + Options Trading Strategies   TNK  Teekay Tankers (0.92)


CRBG Forecast + Options Trading Strategies   CRBG  SAFG Retirement Services (0.92)


MCK Forecast + Options Trading Strategies   MCK  Mckesson (0.91)



Uncorrelated Assets

Assets with little price relationship to DHT



BNS Forecast + Options Trading Strategies   BNS  Bank Of Nova Scotia (-0.0)


VRNT Forecast + Options Trading Strategies   VRNT  Verint Systems (0.0)


FTNT Forecast + Options Trading Strategies   FTNT  Fortinet (0.0)


GPN Forecast + Options Trading Strategies   GPN  Global Payments (0.0)


KSS Forecast + Options Trading Strategies   KSS  Kohl's (0.0)



Anticorrelated Assets

Assets that tend to move strongly against DHT



MED Forecast + Options Trading Strategies   MED  Medifast (-0.9)


HTZ Forecast + Options Trading Strategies   HTZ  Hertz Global Holdings (-0.9)


LEG Forecast + Options Trading Strategies   LEG  Leggett & Platt (-0.9)


PTLO Forecast + Options Trading Strategies   PTLO  Portillos (-0.91)


PACB Forecast + Options Trading Strategies   PACB  Pacific Biosciences of California (-0.92)





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