PLAY Forecast + Trading Strategies


Bullish Case: Dave & Buster’s Entertainment (PLAY) may benefit from strong seasonal demand and successful marketing initiatives leading up to Q3. A bullish sentiment reflected in high call option volumes, particularly in August, supports potential upward movement.


Bearish Case: If macroeconomic conditions worsen, leading to a decline in consumer spending, PLAY's revenue may suffer. High debt levels and disappointing earnings reports could exacerbate negative sentiment, pushing the stock lower.


Potential Outcomes:

1) Strong Q2 earnings beat (50%) - boosts stock price.

2) Continued consumer spending difficulties (30%) - stock declines.

3) Sideways trading due to market uncertainty (20%). Recent volatility spikes suggest heightened market actions.


Trading Oracle: Adopt a bullish approach using debit spreads, buying $40.00 calls and selling $41.00 calls to leverage rising implied volatility. Focus on August expiration for immediate gains, with a high probability of profit due to current market conditions.


July 24, 2024


Dave & Buster's Entertainment Forecast

PLAY      Dave & Buster's Entertainment











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LI Forecast + Options Trading Strategies   LI  Li Auto (-0.21)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.31)



Uncorrelated Assets

Assets with little price relationship to PLAY



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.13)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.21)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.31)


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



Anticorrelated Assets

Assets that tend to move strongly against PLAY



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


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.13)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.21)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.31)





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