DRIP Forecast + Trading Strategies


Bullish Case: Even amid heavy put activity, DRIP shows potential for sharp short-term bullish moves given elevated implied volatility and historical returns over short holding periods.


Bearish Case: Continued negative sentiment is forecasted with a substantial implied volatility premium and significant historical declines, making further price drops possible.


Potential Outcomes:

1. Further Decline (60%): High put volume and downtrend persist.

2. Short-term Rebound (30%): Implied volatility suggests possible sharp bullish movement.

3. Flat Performance (10%): Neutral trend due to mixed signals.


Trading Oracle: Execute a bullish debit spread strategy with Aug 16, 2024, calls, specifically the 9/10 call spread, capitalizing on high implied volatility and potential for rebound. Time frame: 1 month.


July 16, 2024


Direxion Daily S&P Oil & Gas Exp. & Prod. Forecast

DRIP      Direxion Daily S&P Oil & Gas Exp. & Prod.











Correlated Assets

Assets that tend to move strongly with DRIP



VFC Forecast + Options Trading Strategies   VFC  VF (0.58)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.42)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.53)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.97)



Uncorrelated Assets

Assets with little price relationship to DRIP



LI Forecast + Options Trading Strategies   LI  Li Auto (0.42)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.53)


VFC Forecast + Options Trading Strategies   VFC  VF (0.58)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.97)



Anticorrelated Assets

Assets that tend to move strongly against DRIP



VFC Forecast + Options Trading Strategies   VFC  VF (0.58)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.42)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.53)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.97)





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