SAIC Forecast + Trading Strategies


Bullish Case: SAIC has strong historical mean-reverting tendencies coupled with recent institutional buying, robust EPS growth, and undervalued metrics based on PE ratios.


Bearish Case: Recent insider selling and reduced stake by major investors suggest potential skepticism regarding future growth, compounded by high implied volatility and bearish options activity.


Potential Outcomes:

1. (50%) Mean reversion to $130 if current trends persist.

2. (30%) Price recovery to $135 driven by positive earnings.

3. (20%) Decline to $115 due to insider selling or negative news.


Trading Oracle: Adopt a cautious bullish stance with long debit spreads, targeting strikes near $125-$130. Use August/October expirations to capitalize on mean reversion and institutional support. Avoid low strikes due to high volatility. Monitor insider activity closely.


July 23, 2024


Science Applications International Forecast

SAIC      Science Applications International











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