KWEB Forecast + Trading Strategies


Bullish Case: Despite recent volatility, favorable conditions in the Chinese economy and increased institutional interest suggest a potential rebound in KWEB's price, particularly if positive regulatory changes occur.


Bearish Case: Continued geopolitical tensions and regulatory scrutiny pose significant risks, potentially leading to sustained selling pressure and limiting KWEB's recovery in the near term.


Potential Outcomes:

1. Price recovery and hit $30 in the next three months (30% chance).

2. Continued downtrend, price below $25 (40% chance).

3. Consolidation around current levels, with less volatility (30% chance).


Trading Oracle: Adopt a bullish strategy with a debit spread: buy KWEB 08/16/2024 30.00 C, sell KWEB 08/16/2024 32.00 C. This captures upside potential with limited risk, targeting near-term price movement and leveraging current implied volatility.


July 25, 2024


KraneShares CSI China Internet Forecast

KWEB      KraneShares CSI China Internet











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LI Forecast + Options Trading Strategies   LI  Li Auto (0.0)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.11)



Uncorrelated Assets

Assets with little price relationship to KWEB



LI Forecast + Options Trading Strategies   LI  Li Auto (0.0)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.11)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.19)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.4)



Anticorrelated Assets

Assets that tend to move strongly against KWEB



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.4)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.19)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.0)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.11)





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