LGO Forecast


Bullish Case: LGO benefits from urban development in Largo and potential uptick in business, leading to possible sales increase. Historical mean reversion supports a positive outlook.


Bearish Case: Declining production of Vanadium Pentoxide, coupled with rising volatility, suggests continued negative price trends. Historical data reveals a higher likelihood of negative returns.


Potential Outcomes:

1) Urban growth spurs sales (40%).

2) Decline in Vanadium production hurts sales (35%).

3) Market volatility leads to price drop (25%).


Trading Oracle: Trade short volatility using credit spreads for a 3-6 month horizon with emphasis on bearish trends. Collect premiums upfront to capitalize on short-term downtrends indicated by ongoing volatility and historical return patterns.


July 23, 2024


Largo Forecast

LGO      Largo











Correlated Assets

Assets that tend to move strongly with LGO



VFC Forecast + Options Trading Strategies   VFC  VF (0.79)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.59)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.41)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.68)



Uncorrelated Assets

Assets with little price relationship to LGO



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.41)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.59)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.68)


VFC Forecast + Options Trading Strategies   VFC  VF (0.79)



Anticorrelated Assets

Assets that tend to move strongly against LGO



VFC Forecast + Options Trading Strategies   VFC  VF (0.79)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.59)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.41)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.68)





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