FA Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: FA's higher implied volatility may indicate upcoming positive news or events. Historical returns suggest a likelihood of gains over longer holding periods, supporting a potential upward trend.




Bearish Case: High implied volatility and negligible trading volumes signal cautious sentiment. Recent price instability hints at possible downside risk, exacerbated by macroeconomic uncertainties.




Potential Outcomes: Recovery to $19.50 (30%); continued stagnation around $18.24 (50%); drop below $17 (20%). Outcomes influenced by volatility trends and macro conditions.




Trading Oracle: Utilize a bearish short straddle strategy at the $15 strike for July 2025 expiration to capture premium decay. FA's high implied volatilities and flat outlook enhance this position's probability of profit.



February 22, 2025


First Advantage Forecast

FA        First Advantage











Correlated Assets

Assets that tend to move strongly with FA



BIP Forecast + Options Trading Strategies   BIP  Brookfield Infrastructure (0.82)


ZETA Forecast + Options Trading Strategies   ZETA  Zeta Global Holdings Corp (0.81)


CLH Forecast + Options Trading Strategies   CLH  Clean Harbors (0.81)


RY Forecast + Options Trading Strategies   RY  Royal Bank Of Canada (0.79)


TT Forecast + Options Trading Strategies   TT  Trane (0.78)



Uncorrelated Assets

Assets with little price relationship to FA



SCHW Forecast + Options Trading Strategies   SCHW  Charles Schwab (0.0)


XPOF Forecast + Options Trading Strategies   XPOF  Xponential Fitness (-0.0)


DKL Forecast + Options Trading Strategies   DKL  Delek Logistics Partners LP - Unit (0.0)


JOE Forecast + Options Trading Strategies   JOE  St. Joe (0.0)


FND Forecast + Options Trading Strategies   FND  Floor & Decor (0.0)



Anticorrelated Assets

Assets that tend to move strongly against FA



HES Forecast + Options Trading Strategies   HES  Hess (-0.63)


PTEN Forecast + Options Trading Strategies   PTEN  Patterson-UTI Energy (-0.66)


GT Forecast + Options Trading Strategies   GT  Goodyear Tire & Rubber (-0.66)


EC Forecast + Options Trading Strategies   EC  Ecopetrol SA (-0.68)


SAGE Forecast + Options Trading Strategies   SAGE  Sage Therapeutics (-0.69)









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