JWN Forecast + Trading Strategies


Bullish Case: JWN is poised for recovery as positive consumer sentiment post-anniversary sale may boost sales, indicated by higher options volume and favorable implied volatility spikes.


Bearish Case: Market concerns over urban store closures and high theft rates could negatively impact JWN’s profitability, leading to potential stock drops as investors reassess risk exposure.


Potential Outcomes:

1) Continued recovery through strategic promotions (40%).

2) Adverse impact from urban challenges and theft (35%).

3) Market volatility causing pricing correction (15%).

4) Economic downturn affecting discretionary spending (10%).


Trading Oracle: Implement a bullish call debit spread: buy JWN $22 call, sell $23 call, targeting a moderate upside. This leverages the current elevated implied volatility and recent strength in call volume. Expiry in 30 days can capture potential upward movements efficiently.


July 24, 2024


Nordstrom Forecast

JWN      Nordstrom











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Assets that tend to move strongly with JWN



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XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.34)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.47)



Uncorrelated Assets

Assets with little price relationship to JWN



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.34)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.47)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.75)



Anticorrelated Assets

Assets that tend to move strongly against JWN



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.75)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.34)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.47)





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