LOB Forecast


Bullish Case: The new partnership with Anatomy and positive institutional action could push LOB above $50 in the short term, with increasing demand for their novel financial products bolstering revenue growth.


Bearish Case: High Helium AI implied volatility and current mean reversion tendencies suggest potential for downward correction, especially if insider sales increase or broader market conditions worsen.


Potential Outcomes:

1. Institutional rally sparks: 40%.

2. Insider sales cause drop: 30%.

3. Ongoing flat action: 15%.

4. News-driven volatility spike: 15%.


Trading Oracle: Utilize a balanced iron condor strategy expiring December 2024: Sell 1 $45 Call, Buy 1 $50 Call, Sell 1 $35 Put, Buy 1 $30 Put. This strategy profits from LOB's expected mean reversion and captures elevated implied volatility, with defined risk and high profit potential.


July 18, 2024


Live Oak Bancshares Forecast

LOB      Live Oak Bancshares











Correlated Assets

Assets that tend to move strongly with LOB



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.41)


VFC Forecast + Options Trading Strategies   VFC  VF (0.01)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.12)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.14)



Uncorrelated Assets

Assets with little price relationship to LOB



VFC Forecast + Options Trading Strategies   VFC  VF (0.01)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.12)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.14)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.41)



Anticorrelated Assets

Assets that tend to move strongly against LOB



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.41)


VFC Forecast + Options Trading Strategies   VFC  VF (0.01)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.12)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.14)





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