OII Forecast




Price Forecast:


Bearish<->Bullish




Bullish Case: OII's strong institutional backing and continued investments in growth sectors may sustain momentum. The high call option volume suggests bullish sentiment, indicating potential price recovery post-earnings. Historical returns support favorable long-term trends.




Bearish Case: Concerns over high implied volatility (especially in puts) signal market skepticism about OII's immediate future. Potential insider selling and macroeconomic pressures could adversely affect profit margins and investor confidence.




Potential Outcomes:

1. Revenue growth sustained (30%)

2. Moderate growth (50%)

3. Decline due to economic shifts (20%). Probability skewness indicates higher risks of downturn, particularly given current volatility metrics.




Trading Oracle: Consider a bullish debit spread: buy the Dec 2024 $30 Call, sell the Dec 2024 $35 Call to leverage high implied volatility while mitigating risks. Target a price bounce back towards $32.50 by January 2025, capitalizing on optimism post-earnings announcement.



November 14, 2024


Oceaneering International Forecast

OII        Oceaneering International
















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