AI IWO Forecast


Bullish Case: The IWO implied volatility term structure suggests lower volatility into early 2025, indicating stabilizing market confidence. The positive historical price return patterns indicate potential for upward momentum as institutional interest grows.


Bearish Case: High short-term implied volatility and a flat current price trend signal potential profit-taking or bearish sentiments, risking a downturn if macroeconomic factors shift negatively against small-cap stocks.


Potential Outcomes:

1. Stable price with gradual growth: 45% chance, supported by institutional investments.

2. Sudden volatility spike: 30% chance, contingent on market corrections.

3. Prolonged stagnation: 25% chance, influenced by lack of decisive market movement.


Trading Oracle: Engage in bullish credit spreads by selling IWO 08/16/2024 270/260 P to leverage current high implied volatility and capture premium, maximizing returns as market stability favors a neutral-to-bullish outlook.


August 10, 2024


iShares Russell 2000 Growth Forecast

IWO      iShares Russell 2000 Growth











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VTWO Forecast + Options Trading Strategies   VTWO  Vanguard Russell 2000 Index (0.99)


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MIDU Forecast + Options Trading Strategies   MIDU  Direxion Daily Mid Cap Bull 3x Shares (0.96)


VYM Forecast + Options Trading Strategies   VYM  Vanguard High Dividend Yield Indx (0.95)


SCHD Forecast + Options Trading Strategies   SCHD  Schwab US Dividend Equity (0.95)



Uncorrelated Assets

Assets with little price relationship to IWO



BGS Forecast + Options Trading Strategies   BGS  B&G Foods (-0.0)


INTA Forecast + Options Trading Strategies   INTA  Intapp (-0.0)


HUN Forecast + Options Trading Strategies   HUN  Huntsman (-0.0)


RIO Forecast + Options Trading Strategies   RIO  Rio Tinto (0.0)


MDLZ Forecast + Options Trading Strategies   MDLZ  Mondelez International (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against IWO



VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.86)


SQQQ Forecast + Options Trading Strategies   SQQQ  ProShares UltraPro Short QQQ (-0.91)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.92)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.92)


SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.98)





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