PDCO Forecast


Bullish Case: PDCO's historical mean reversion suggests strong recovery potential, especially given the optimistic outlook for dental demand and overall sector resilience. Increasing call volume indicates bullish sentiment ahead of earnings.


Bearish Case: Economic headwinds, including inflation and rising interest rates, could lead to continued margin pressure. Recent price action has trended downward, suggesting a 50% chance of revisiting support around $24.


Potential Outcomes:

1) Strong earnings rebound (30%);

2) Price recovery towards mean (25%);

3) Continued negative trend testing support at $24 (45%). Market volatility is statistically elevated in the short term.


Trading Oracle: Consider initiating a bullish debit spread using PDCO 26.00 C and 28.00 C for the August expiration, capitalizing on low implied volatility and recent price action trends. The spread offers a favorable risk/reward profile with strong upside potential.


July 25, 2024


Patterson Companies Forecast

PDCO      Patterson Companies











Correlated Assets

Assets that tend to move strongly with PDCO



LI Forecast + Options Trading Strategies   LI  Li Auto (0.74)


VFC Forecast + Options Trading Strategies   VFC  VF (0.73)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.49)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.81)



Uncorrelated Assets

Assets with little price relationship to PDCO



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.49)


VFC Forecast + Options Trading Strategies   VFC  VF (0.73)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.74)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.81)



Anticorrelated Assets

Assets that tend to move strongly against PDCO



LI Forecast + Options Trading Strategies   LI  Li Auto (0.74)


VFC Forecast + Options Trading Strategies   VFC  VF (0.73)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.49)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.81)





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