PEY Forecast


Bullish Case: PEY's recent price increase to $20.97, combined with a high call volume (17% more than puts), indicates strong bullish sentiment. As the market adjusts to upcoming dividend payouts, PEY may stabilize or increase, driven by mean reversion and favorable macro conditions.


Bearish Case: Increased implied volatility (up to 265.6% for short calls) signals potential market uncertainty. The overhang of institutional selling and new shares issuance could pressure PEY down, particularly if macroeconomic factors worsen, leading to a decline below recent support levels.


Potential Outcomes:

1) 50% chance of PEY stabilizing around $21 due to positive earnings and dividend news.

2) 25% chance of a dip below $19 amidst macroeconomic uncertainty.

3) 25% chance of a rally towards $22 if bullish sentiment and strong volume persist.


Trading Oracle: Execute a bullish broken-wing butterfly spread using long PEY 08/16/2024 22C, short PEY 08/16/2024 21C, and sell an out-of-the-money put. This trade takes advantage of low implied volatility while retaining upside exposure, offering high reward-to-risk dynamics in a moderate time frame.


July 25, 2024


Invesco Capital Management LLC - Invesco High Yield Equity Dividend Achievers Forecast

PEY      Invesco Capital Management LLC - Invesco High Yield Equity Dividend Achievers











Correlated Assets

Assets that tend to move strongly with PEY



DPST Forecast + Options Trading Strategies   DPST  Direxion Daily Regional Banks Bull 3X Shares (0.85)


BXP Forecast + Options Trading Strategies   BXP  Boston Properties (0.81)


KRE Forecast + Options Trading Strategies   KRE  SPDR S&P Regional Banking (0.81)


JOE Forecast + Options Trading Strategies   JOE  St. Joe (0.77)


MCB Forecast + Options Trading Strategies   MCB  Metropolitan (0.74)



Uncorrelated Assets

Assets with little price relationship to PEY



FOXF Forecast + Options Trading Strategies   FOXF  Fox Factory (-0.0)


CTRA Forecast + Options Trading Strategies   CTRA  Coterra Energy (0.0)


IONS Forecast + Options Trading Strategies   IONS  Ionis Pharmaceuticals (0.0)


CIVI Forecast + Options Trading Strategies   CIVI  Civitas Resources Inc New (-0.0)


BDX Forecast + Options Trading Strategies   BDX  Becton, Dickinson And Company (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against PEY



RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.53)


SARK Forecast + Options Trading Strategies   SARK  Tuttle Capital Short Innovation (-0.54)


UUP Forecast + Options Trading Strategies   UUP  Invesco DB US Dollar Index Bullish (-0.56)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.59)


SRS Forecast + Options Trading Strategies   SRS  ProShares UltraShort Real Estate (-0.6)





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