Price Forecast:

Bullish Case: ITEQ may benefit from sustained investor interest, evidenced by high implied volatility at lower strikes. This suggests optimism around future price increases, particularly if diversification strategies lead to growth in key sectors.

Bearish Case: However, elevated implied volatility indicates potential market unease, and historical return patterns show substantial risks associated with negative returns, especially in the short term, underscoring the possibility of declines.

Potential Outcomes:

• 1. Positive market response to ETF diversification (40% likelihood).
• 2. Adverse geopolitical conditions strain investor confidence (30% likelihood).
• 3. Increased regulatory scrutiny affects trading volume negatively (30% likelihood).

Trading Oracle: Consider implementing a bullish debit spread using ITEQ 12/20/2024 52.00 Calls and 53.00 Calls, leveraging high implied volatility. Given the current outlook, this strategy captures potential upside while managing risks effectively. Target short-term positions anticipating a rise towards $54-$56 before expiration.

December 14, 2024