DVOL Forecast


Bullish Case: The recent steady upward trend and lower implied volatility suggest a continued positive momentum, especially with upcoming sector growth opportunities.


Bearish Case: High-end implied volatility at lower strike prices indicates potential downside risks, coupled with muted price actions and short-term volatility forecasts.


Potential Outcomes:

1. Price rise: 40% chance due to positive momentum.

2. Flat performance: 30% chance due to current stability forecasts.

3. Price drop: 30% chance due to high implied volatility at low strikes.


Trading Oracle: Implement a bullish Helium Long Volatility strategy with a debit spread, leveraging the lower near-term implied volatility and targeting a $35 strike for expirations in ~30 days. This balances risk while optimizing potential gains in a moderately upward trend scenario.


July 17, 2024


First Trust Exchange-Traded Fund VI - First Trust Dorsey Wright Momentum & Low Volatility Forecast

DVOL      First Trust Exchange-Traded Fund VI - First Trust Dorsey Wright Momentum & Low Volatility











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SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.99)





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