SEDG Forecast + Trading Strategies


Bullish Case: SolarEdge's involvement in agrivoltaics research with Rutgers suggests potential for innovative growth. Anticipated market recovery in clean energy could lead to increased demand for SEDG's products, bolstered by enhanced regulatory support.


Bearish Case: Persistent high inventory levels and reduced demand forecasts, coupled with recent layoffs, indicate a challenging landscape for SolarEdge. Elevated implied volatility suggests heightened market uncertainty, with a bearish sentiment prevailing.


Potential Outcomes:

1. Market recovery in renewable energy (50%);

2. Continued weak demand due to inventory issues (30%);

3. Positive regulatory shifts enhancing demand (20%). These probabilities are derived from current market conditions and historical trends.


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July 25, 2024


Solaredge Forecast

SEDG      Solaredge











Correlated Assets

Assets that tend to move strongly with SEDG



VFC Forecast + Options Trading Strategies   VFC  VF (0.86)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.81)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.36)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.78)



Uncorrelated Assets

Assets with little price relationship to SEDG



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.36)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.78)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.81)


VFC Forecast + Options Trading Strategies   VFC  VF (0.86)



Anticorrelated Assets

Assets that tend to move strongly against SEDG



VFC Forecast + Options Trading Strategies   VFC  VF (0.86)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.81)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.36)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.78)





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