RH Forecast + Trading Strategies


Bullish Case: RH's share buyback program and high implied volatility suggest potential upside. Historical price data and insider purchases indicate confidence.


Bearish Case: Elevated implied volatility and potential market correction may negatively impact RH. Recent bearish sentiment and historical price return suggest cautious approach.


Potential Outcomes:

1. Share buyback boosts value (55%).

2. Market correction drives prices down (35%).

3. Continued flat trading near current levels (10%).


Trading Oracle: Execute bull put spread by selling $257.5 put and buying $250 put expiring in ~7 days. This strategy leverages current elevated IV, offers premium collection, and aligns with Helium’s bullish risk assessment. High reward:risk with 73% POP.


July 16, 2024


RH - Forecast

RH      RH -











Correlated Assets

Assets that tend to move strongly with RH



VFC Forecast + Options Trading Strategies   VFC  VF (0.47)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.42)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.09)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.01)



Uncorrelated Assets

Assets with little price relationship to RH



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.01)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.09)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.42)


VFC Forecast + Options Trading Strategies   VFC  VF (0.47)



Anticorrelated Assets

Assets that tend to move strongly against RH



VFC Forecast + Options Trading Strategies   VFC  VF (0.47)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.42)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.09)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.01)





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