LIT Forecast + Trading Strategies


Bullish Case: LIT's price may recover due to rising lithium demand driven by increased EV adoption and energy storage solutions. Historical returns suggest a favorable upside trajectory if past trends repeat.


Bearish Case: A potential oversupply of lithium and technological shifts may continue to pressure LIT's price downward. Current volatility indicates market skepticism, suggesting heightened risks in the short term.


Potential Outcomes:

1. 40% probability: Continued EV adoption boosts lithium demand, stabilizing prices.

2. 30% probability: Supply increases lead to price declines.

3. 30% probability: Market volatility persists due to economic uncertainty.


Trading Oracle: Engage in a bullish debit spread by buying a $40 call and selling a $41 call expiring in 30 days. This captures upside potential from expected EV growth while limiting exposure amid current volatility levels. High probability-profits and well-aligned with market dynamics.


July 24, 2024


Global X Lithium & Battery Tech Forecast

LIT      Global X Lithium & Battery Tech











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ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.7)



Uncorrelated Assets

Assets with little price relationship to LIT



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.16)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.7)


VFC Forecast + Options Trading Strategies   VFC  VF (0.71)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.82)



Anticorrelated Assets

Assets that tend to move strongly against LIT



LI Forecast + Options Trading Strategies   LI  Li Auto (0.82)


VFC Forecast + Options Trading Strategies   VFC  VF (0.71)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.16)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.7)





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