FLEX Forecast


Bullish Case: FLEX options show strong near-term demand, with implied volatility indicating an expectation of upward price movements. Historical data reflects robust returns for short holding periods, positioning FLEX for potential upside as market sentiment shifts positively.


Bearish Case: The current flat price action coupled with elevated put volume suggests bearish sentiment. Increasing competition and macroeconomic uncertainties could pressure FLEX prices, leading to potential downside risks especially in a volatile market environment.


Potential Outcomes:

1. Positive earnings report boosts price (40%);

2. Increased adoption due to strategic partnerships (35%);

3. Regulatory headwinds dampen growth (25%);

4. Implementation issues arising from recent layoffs (20%);

5. Macroeconomic downturn affecting demand (30%).


Trading Oracle: Utilize a bullish long volatility debit spread, focusing on near-term upside potential. Given elevated implied volatility, target strikes near current levels ($29.72) with a 1-2 month horizon. The high probability of profit with a favorable risk-reward profile ensures strong alpha generation.


July 24, 2024


Flex Forecast

FLEX      Flex











Correlated Assets

Assets that tend to move strongly with FLEX



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.5)



Uncorrelated Assets

Assets with little price relationship to FLEX



LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.5)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.52)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)



Anticorrelated Assets

Assets that tend to move strongly against FLEX



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.5)





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