LABU Forecast


Bullish Case: Bullish trends show modest recovery with biotech appeal in stagflation. LABU price up 13.7% in past 60 days.


Bearish Case: Historical data shows significant LABU decline (-88.6% over 5 years). Recent flat price action and high implied volatility at $113.44 suggest ongoing struggles.


Potential Outcomes:

1. Biotech sector rebound due to policy & rate cuts (40%).

2. Continued volatility and decline (45%).

3. Neutral short-term fluctuations (15%).


Trading Oracle: Trade bullish debit spreads expiring October 2024. Buy Oct 110/120 call spread given modestly bullish AI forecast and modest risk premium. This provides a high reward:risk at optimal implied volatility.


June 30, 2024


Direxion Daily S&P Biotech Bull 3X Shares Forecast

LABU      Direxion Daily S&P Biotech Bull 3X Shares











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XLRE Forecast + Options Trading Strategies   XLRE  Real Estate Select Sector SPDR (0.87)


VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.86)



Uncorrelated Assets

Assets with little price relationship to LABU



GRAB Forecast + Options Trading Strategies   GRAB  Grab Holdings Limited (-0.0)


PBF Forecast + Options Trading Strategies   PBF  PBF Energy (-0.0)


FOXA Forecast + Options Trading Strategies   FOXA  Fox Corporation - (0.0)


ABR Forecast + Options Trading Strategies   ABR  Arbor Realty (0.0)


ENVX Forecast + Options Trading Strategies   ENVX  Enovix (0.0)



Anticorrelated Assets

Assets that tend to move strongly against LABU



DXD Forecast + Options Trading Strategies   DXD  ProShares UltraShort Dow30 (-0.7)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.72)


TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.76)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.83)


UUP Forecast + Options Trading Strategies   UUP  Invesco DB US Dollar Index Bullish (-0.87)





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