NWS Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: NWS's return surface suggests significant upside over 1-2 year hold periods, bolstered by rising digital news consumption and ad revenues, especially post-election.




Bearish Case: NWS's high implied volatility and mean-reverting price action indicate risk of downturn from misinformation and intensifying competition from alternative media.




Potential Outcomes: Potential deepfake incidents or legislative changes have a 40% chance to impact credibility or enhance bargaining; geopolitical tensions continue to drive news demand (60%).




Trading Oracle: Utilize a long vol strategy with debit spreads: buy NWS Feb 30C and sell 35C. Implied volatility is high, offering favorable premiums. Holding period: 60 days, capturing post-election ad growth and minimizing downside risks.



January 16, 2025


News Forecast

NWS        News











Correlated Assets

Assets that tend to move strongly with NWS



GLW Forecast + Options Trading Strategies   GLW  Corning (0.89)


VOO Forecast + Options Trading Strategies   VOO  Vanguard S&P 500 (0.89)


JPM Forecast + Options Trading Strategies   JPM  JPMorgan Chase (0.89)


SSO Forecast + Options Trading Strategies   SSO  ProShares Ultra S&P500 (0.88)


VGT Forecast + Options Trading Strategies   VGT  Vanguard Information Technology (0.88)



Uncorrelated Assets

Assets with little price relationship to NWS



EIX Forecast + Options Trading Strategies   EIX  Edison International (0.0)


YELP Forecast + Options Trading Strategies   YELP  Yelp (0.01)


PTLO Forecast + Options Trading Strategies   PTLO  Portillos (-0.01)


CWH Forecast + Options Trading Strategies   CWH  Camping World (0.01)


DOX Forecast + Options Trading Strategies   DOX  Amdocs (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against NWS



GES Forecast + Options Trading Strategies   GES  Guess (-0.84)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.84)


BGS Forecast + Options Trading Strategies   BGS  B&G Foods (-0.87)


CRI Forecast + Options Trading Strategies   CRI  Carters (-0.87)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.88)









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