EHC Forecast


Bullish Case: EHC's optimistic future outlook and positive earnings momentum, along with robust institutional investment and insider confidence, support continued upward price movement.


Bearish Case: Rising short interest, potential operational hiccups, and overvaluation relative to industry averages suggest possible price pullbacks and limit near-term upside.


Potential Outcomes:

1. Continued institutional buying boosts prices (+25%, 40%).

2. Operational inefficiencies or increased debt costs trigger pullback (-15%, 25%).

3. Market stabilizes around current levels (0%, 35%).


Trading Oracle: Strategically leverage debit spreads due to the high-volatility environment. Initiate a bullish position targeting $90/$95 calls expiring in October 2024. This captures the upward trend and bullish institutional activity while minimizing risk and capitalizing on favorable implied volatility.


June 27, 2024


Encompass Health Forecast

EHC      Encompass Health











Correlated Assets

Assets that tend to move strongly with EHC



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.9)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.61)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.67)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.69)



Uncorrelated Assets

Assets with little price relationship to EHC



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.61)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.67)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.69)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.9)



Anticorrelated Assets

Assets that tend to move strongly against EHC



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.9)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.61)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.67)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.69)





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