MDGL Forecast + Trading Strategies




Price Forecast:


Bearish<->Bullish




Bullish Case: MDGL's strong recent performance, fueled by Rezdiffra's success, combined with lower market uncertainty suggests a likely upward trajectory. If upcoming trial results are favorable, this could drive prices significantly higher, supported by high trading volumes in call options.




Bearish Case: With high options volatility and upcoming competitive pressures from market entrants, MDGL faces potential downward risk. If negative news arises or broader market conditions worsen, a sell-off could occur, impacting prices negatively.




Potential Outcomes:

1) Positive trial results leading to $340 (40%)


2) Sideways movement at $317 (30%)


3) Market downturn driving prices below $300 (20%)


4) New competition impacting price to $280 (10%)




Trading Oracle: Adopt a bullish approach by establishing a call spread strategy. Buy $320 calls and sell $340 calls for January expiration, capitalizing on the current high implied volatility while targeting a price rise above $340. This approach balances risk and reward effectively, enhancing profit potential.



November 21, 2024


Madrigal Pharmaceuticals Forecast

MDGL        Madrigal Pharmaceuticals











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