FISI Forecast


Bullish Case: Financial services in the metaverse show promise, fueled by new blockchain-based innovations and improved cyber resilience.


Bearish Case: High regulatory costs, flat recent price action, and negative historical returns underscore a challenging outlook for FISI.


Potential Outcomes: Flat recent price action +14% likelihood of regulatory benefits vs. 23% risk of cyber breach and 55% chance of regulatory cost increase.


Trading Oracle: Given the inclination towards flat price action and high implied volatility, implement a neutral strategy by selling OTM put credit spreads expiring in 60 days to capitalize on time decay. This leverages the high volatility to maximize premium collection with a defined risk.


June 27, 2024


Financial Institutions Forecast

FISI      Financial Institutions












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