LOW Forecast + Trading Strategies


Bullish Case: LOW has strong long-term growth with a 357% increase over ten years. Implied volatility predicts stable prices, supporting a bullish position.


Bearish Case: Persistent high P/B ratio and recent downward trend (down 11.6% in 90 days) suggest overvaluation. High implied volatility indicates potential negative sentiment.


Potential Outcomes: 50% stable price due to mean reversion, 30% downside risk driven by overvaluation, 20% bullish move based on historical growth trend.


Trading Oracle: Implement a bullish short volatility strategy. Sell the $217.5 put expiring in 7 days and buy the $212.5 put. Strategy is supported by 81% odds of profit, high edge, and positive historical performance.


June 30, 2024


Lowe's Cos. Forecast

LOW      Lowe's Cos.











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Assets that tend to move strongly with LOW



H Forecast + Options Trading Strategies   H  Hyatt Hotels (0.76)


SQ Forecast + Options Trading Strategies   SQ  Square (0.75)


HD Forecast + Options Trading Strategies   HD  Home Depot (0.75)


SPHB Forecast + Options Trading Strategies   SPHB  Invesco Capital Management LLC - Invesco S&P 500 High Beta (0.73)


CINF Forecast + Options Trading Strategies   CINF  Cincinnati Financial (0.72)



Uncorrelated Assets

Assets with little price relationship to LOW



EVLV Forecast + Options Trading Strategies   EVLV  Evolv (-0.01)


SAVA Forecast + Options Trading Strategies   SAVA  Cassava Sciences (0.06)


AOSL Forecast + Options Trading Strategies   AOSL  Alpha & Omega Semiconductor (-0.07)


IEP Forecast + Options Trading Strategies   IEP  Icahn (0.09)


PII Forecast + Options Trading Strategies   PII  Polaris (0.11)



Anticorrelated Assets

Assets that tend to move strongly against LOW



AOSL Forecast + Options Trading Strategies   AOSL  Alpha & Omega Semiconductor (-0.07)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.12)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.22)


EOSE Forecast + Options Trading Strategies   EOSE  Eos Energy Enterprises (-0.25)


NOVA Forecast + Options Trading Strategies   NOVA  Sunnova Energy International (-0.28)





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