MAG Forecast + Trading Strategies


Bullish Case: MAG Silver has strong production efficiency and potential for capital returns. This, combined with potential bullish sentiment for silver, suggests a positive price outlook.


Bearish Case: Continued mean-reverting behavior and high implied volatility could lead to further price decline. Market pessimism due to uncertain macroeconomic factors might pressurize the stock.


Potential Outcomes:

1. Production efficiency boosts earnings (55%).

2. Market pessimism persists (35%).

3. Unexpected high volatility triggers a price spike/drop (10%).


Trading Oracle: Execute a bullish debit spread: long Feb $15 call and short Feb $17.5 call. Implied volatility supports this strategy, targeting a moderate price recovery. Time outlook: 224 days; strategy provides positive edge and a high reward-to-risk ratio.


July 14, 2024


MAG Silver Forecast

MAG      MAG Silver











Correlated Assets

Assets that tend to move strongly with MAG



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.59)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.47)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.37)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.42)



Uncorrelated Assets

Assets with little price relationship to MAG



VFC Forecast + Options Trading Strategies   VFC  VF (-0.37)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.42)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.47)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.59)



Anticorrelated Assets

Assets that tend to move strongly against MAG



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.59)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.47)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.37)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.42)





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