Price Forecast:

Bullish Case: Recent geopolitical tensions and high market volatility foreshadow potential upside in SCO's price, especially with calls exceeding puts in trading volume and a favorable historical return surface suggesting possible bullish reversals.

Bearish Case: The high implied volatility coupled with declining historical returns indicates strong bearish sentiment, and if geopolitical instability persists or worsens, SCO may face downward pressure in the near-term.

Potential Outcomes:

1. 40% chance of a bullish uptick based on geopolitical stability;

2. 35% chance of continued price stagnation around current levels;

3. 25% chance of further decline due to market corrections and bearish sentiment.

Trading Oracle: Adopt a bullish long call spread: buy SCO $18 calls and sell $19 calls, expiring in 8 days. This strategy targets an anticipated rally from options trading volume dynamics, with a strong edge and high potential return compared to risk. Exit strategy within a week for maximum gains.

November 08, 2024