RH Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: RH's elevated implied volatility and strong historical returns suggest potential upside. The price action indicates recovery possibilities, supported by high call option volume.




Bearish Case: Persistent high volatility across future dates suggests market uncertainty. Recent price declines and low historical forecast accuracy could indicate continual downward pressure.




Potential Outcomes:
  • Price rises due to positive sentiment (50%).
  • Price remains flat as market digests information (30%).
  • Further decline amid continued uncertainty (20%).




Trading Oracle: Implement a bull call spread by buying the RH $340 call and selling the $350 call, expiring in 30 days. Leverage contango in implied volatility and high trading volume to capture short-term upward movement. This strategy offers a favorable risk/reward ratio with high probability of profit.



February 22, 2025


RH - Forecast

RH        RH -











Correlated Assets

Assets that tend to move strongly with RH



QQQJ Forecast + Options Trading Strategies   QQQJ  Invesco NASDAQ Next Gen 100 (0.88)


LYV Forecast + Options Trading Strategies   LYV  Live Nation Entertainment (0.87)


MIDU Forecast + Options Trading Strategies   MIDU  Direxion Daily Mid Cap Bull 3x Shares (0.84)


IWR Forecast + Options Trading Strategies   IWR  BlackRock Institutional Trust Company N.A. - iShares Russell Mid-Cap (0.84)


VTWO Forecast + Options Trading Strategies   VTWO  Vanguard Russell 2000 Index (0.82)



Uncorrelated Assets

Assets with little price relationship to RH



CZR Forecast + Options Trading Strategies   CZR  Caesars Entertainment (0.0)


INTU Forecast + Options Trading Strategies   INTU  Intuit (0.0)


DOMO Forecast + Options Trading Strategies   DOMO  Domo (-0.0)


RMBS Forecast + Options Trading Strategies   RMBS  Rambus (0.0)


FXY Forecast + Options Trading Strategies   FXY  Invesco CurrencyShares Japanese Yen (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against RH



AMN Forecast + Options Trading Strategies   AMN  AMN Healthcare Services (-0.66)


DVN Forecast + Options Trading Strategies   DVN  Devon Energy (-0.66)


EC Forecast + Options Trading Strategies   EC  Ecopetrol SA (-0.66)


BIIB Forecast + Options Trading Strategies   BIIB  Biogen (-0.7)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.72)









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