SD Forecast


Bullish Case: Given the flat volatility surface and recent price stability, a rebound is likely as SD historically shows mean reversion with a 4.6% increase over the past month.


Bearish Case: Recent negative returns despite stable low volatility suggest continuing downside risks. Current flat price action with low likelihood of high positive returns further supports this view.


Potential Outcomes:

1. Continued flat price action amid low volatility (50%).

2. Potential mild rebound due to mean reversion (30%).

3. Further decline from external shocks (20%).


Trading Oracle: Deploy a neutral to mildly bullish debit call spread, buying $13 and selling $15 January 2025 calls. This leverages potential mean-reversion while limiting downside risk, optimizing time decay and low IV exposure for high reward:risk with a positive edge.


July 17, 2024


Sandridge Energy Inc New Forecast

SD      Sandridge Energy Inc New











Correlated Assets

Assets that tend to move strongly with SD



LI Forecast + Options Trading Strategies   LI  Li Auto (0.55)


VFC Forecast + Options Trading Strategies   VFC  VF (0.48)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.14)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.59)



Uncorrelated Assets

Assets with little price relationship to SD



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.14)


VFC Forecast + Options Trading Strategies   VFC  VF (0.48)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.55)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.59)



Anticorrelated Assets

Assets that tend to move strongly against SD



LI Forecast + Options Trading Strategies   LI  Li Auto (0.55)


VFC Forecast + Options Trading Strategies   VFC  VF (0.48)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.14)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.59)





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