IGT Forecast + Trading Strategies


Bullish Case: IGT could benefit from the increasing sports betting market and robust earnings growth, supported by a 4.1% dividend yield and expansion into new markets.


Bearish Case: IGT faces risks from ongoing litigation, high debt levels, and weak consumer spending impacting gaming revenue, compounded by high market implied volatility.


Potential Outcomes: 30% chance of expansion-driven revenue growth; 50% chance of earnings disappointment driving down stock; 20% chance of consolidation due to mean reversion.


Trading Oracle: Trade bearish short volatility using put credit spreads. Sell $21 calls and buy $22 calls expiring in ~21 days for a 10% annual return. High probability-of-profit given current mean-reverting trend and elevated volatility.


June 30, 2024


International Game Technology Forecast

IGT      International Game Technology











Correlated Assets

Assets that tend to move strongly with IGT



VFC Forecast + Options Trading Strategies   VFC  VF (0.88)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.79)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.43)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.82)



Uncorrelated Assets

Assets with little price relationship to IGT



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.43)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.79)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.82)


VFC Forecast + Options Trading Strategies   VFC  VF (0.88)



Anticorrelated Assets

Assets that tend to move strongly against IGT



VFC Forecast + Options Trading Strategies   VFC  VF (0.88)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.79)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.43)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.82)





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