NNBR Forecast


Bullish Case: Increased demand for NNBR's products aligned with remote work trends could drive significant growth, supported by the stock's recent price momentum and low P/B ratio indicating undervaluation.


Bearish Case: Weak financials, high debt levels, and historical mean reversion patterns suggest continued pressure on NNBR's stock price, with potential losses if negative market sentiment prevails.


Potential Outcomes:

1. Strong recovery due to remote work demand surge (40%).

2. Stagnation amidst unclear market signals (35%).

3. Major negative event leading to further declines (15%).

4. Acquisition by a larger firm boosting prices (10%).


Trading Oracle: Consider initiating a diagonal calendar spread with long calls on short-term expirations (e.g., NNBR 08/16/2024 5.00 C) and shorting longer dated calls (e.g., NNBR 09/20/2024 7.50 C) given the high implied volatility, maximizing potential profit while managing downside risk effectively.


July 25, 2024


NN Forecast

NNBR      NN











Correlated Assets

Assets that tend to move strongly with NNBR



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.6)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.03)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.34)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.35)



Uncorrelated Assets

Assets with little price relationship to NNBR



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.03)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.34)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.35)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.6)



Anticorrelated Assets

Assets that tend to move strongly against NNBR



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.6)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.03)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.34)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.35)





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