SEDG Forecast + Trading Strategies




Price Forecast:


Bearish<->Bullish




Bullish Case: Given the high implied volatility in the upcoming months and short-selling opportunities, a bullish case exists if market optimism about renewables strengthens alongside strategic product launches from SolarEdge, potentially driving prices higher.




Bearish Case: The bearish case is reinforced by the declining price trend of SEDG, which has lost significant value from its all-time highs and confronting regulatory headwinds that exacerbate financial strain, suggesting continued pressure on the stock.




Potential Outcomes:

1) Positive market shift towards renewables (30%);

2) Innovation in SolarEdge products catalyzing a recovery (40%);

3) Continued regulatory pressures leading to further declines (30%).




Trading Oracle: Consider entering a bullish debit spread targeting $16.00-$17.50 calls expiring within one month, leveraging high implied volatility for enhanced premium capture. Alternatively, execute a short put spread at $14.00-$13.00 for decent risk/reward. Overall, aim for short-dated trades to capitalize on elevated volatility with moderately bullish sentiment.



October 27, 2024


Solaredge Forecast

SEDG        Solaredge











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