FARO Forecast


Bullish Case: FARO's new strategic initiatives have the potential for mean reversion, with significant investor interest in tech innovation and sector momentum.


Bearish Case: FARO faces a high likelihood of continued declines, given its historic trend and current lack of support from implied volatility and returns.


Potential Outcomes: 70% continued decline on historic trends. 20% recovery via sector or strategic shifts. 10% unexpected external factors causing volatility.


Trading Oracle: Helium Short Volatility with 3-6 month PUT credit spreads. Focus on higher IV strikes, exploiting anticipated volatility drop and lateral/downward trends for consistent profits. Watch for any unexpected bullish signals to adjust strategy. High positive edge, high reward:risk, solid probability-of-profit.


July 23, 2024


Faro Forecast

FARO      Faro











Correlated Assets

Assets that tend to move strongly with FARO



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.38)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.12)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.13)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.25)



Uncorrelated Assets

Assets with little price relationship to FARO



LI Forecast + Options Trading Strategies   LI  Li Auto (-0.12)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.13)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.25)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.38)



Anticorrelated Assets

Assets that tend to move strongly against FARO



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.38)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.12)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.13)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.25)





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