GD Forecast


Bullish Case: The historical return surface suggests robust potential returns for holding periods up to two years, underscored by significant recent contract wins and stable historical performance.


Bearish Case: The term structure and implied volatility surface indicate near-term uncertainty, compounded by recent operational mishaps and market competition pressures, implying potential volatility.


Potential Outcomes: 40% chance ongoing contracts drive revenue growth, 30% market volatility impacts stock, 30% competitive pressures affect performance. This probabilistic outlook leverages historical trends and current contract context.


Trading Oracle: Sell OTM bull put credit spreads around $285-$290 strike with 45-day expiration. Capture premium amidst relatively low volatility and slight bullish edge. This high reward-to-risk strategy targets implied volatility stabilization, leveraging stable growth footprint.


July 16, 2024


General Dynamics Forecast

GD      General Dynamics











Correlated Assets

Assets that tend to move strongly with GD



NRG Forecast + Options Trading Strategies   NRG  NRG Energy (0.97)


LEVI Forecast + Options Trading Strategies   LEVI  Levi Strauss (0.97)


VRT Forecast + Options Trading Strategies   VRT  Vertiv (0.96)


TME Forecast + Options Trading Strategies   TME  Tencent Music Entertainment Group - (0.96)


COOP Forecast + Options Trading Strategies   COOP  Mr. Cooper (0.96)



Uncorrelated Assets

Assets with little price relationship to GD



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


OXY Forecast + Options Trading Strategies   OXY  Occidental Petroleum (-0.0)


LITE Forecast + Options Trading Strategies   LITE  Lumentum (0.0)


NVAX Forecast + Options Trading Strategies   NVAX  Novavax (-0.0)


HES Forecast + Options Trading Strategies   HES  Hess (0.01)



Anticorrelated Assets

Assets that tend to move strongly against GD



AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (-0.92)


FWRD Forecast + Options Trading Strategies   FWRD  Forward Air (-0.93)


MED Forecast + Options Trading Strategies   MED  Medifast (-0.93)


WTI Forecast + Options Trading Strategies   WTI  W & T Offshore (-0.93)


NKLA Forecast + Options Trading Strategies   NKLA  Nikola (-0.93)





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