SKY Forecast


Bullish Case: SKY's mean-reverting nature and bullish housing market suggest sustained growth potential. Recent increase in institutional investments signals confidence.


Bearish Case: Persistent insider selling and high implied volatility in the near term indicate potential overvaluation risks. Analysis shows a flat mean reversion strategy could falter.


Potential Outcomes: Continued mean reversion (60%), potential sector-triggered volatility (20%), unexpected market correction impacting price (20%).


Trading Oracle: Sell near-term OTM volatility decreasing spreads, focusing on current high front-month implied volatility and historical mean reversion behavior. Aim 30-45 days out for high probability trades.


July 17, 2024


Skyline Champion Forecast

SKY      Skyline Champion











Correlated Assets

Assets that tend to move strongly with SKY



BLDR Forecast + Options Trading Strategies   BLDR  Builders Firstsource (0.91)


EXP Forecast + Options Trading Strategies   EXP  Eagle Materials (0.91)


NAIL Forecast + Options Trading Strategies   NAIL  Direxion Daily Homebuilders & Supplies Bull 3X Shares (0.91)


SHW Forecast + Options Trading Strategies   SHW  Sherwin-Williams (0.9)


MAS Forecast + Options Trading Strategies   MAS  Masco (0.89)



Uncorrelated Assets

Assets with little price relationship to SKY



MCFT Forecast + Options Trading Strategies   MCFT  MasterCraft Boat (0.0)


PLRX Forecast + Options Trading Strategies   PLRX  Pliant Therapeutics (-0.0)


POR Forecast + Options Trading Strategies   POR  Portland General Electric (0.01)


ZM Forecast + Options Trading Strategies   ZM  Zoom Video Communications (-0.01)


VAL Forecast + Options Trading Strategies   VAL  Valaris (0.01)



Anticorrelated Assets

Assets that tend to move strongly against SKY



SDOW Forecast + Options Trading Strategies   SDOW  ProShares UltraPro Short Dow30 (-0.82)


HUM Forecast + Options Trading Strategies   HUM  Humana (-0.82)


SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.86)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.87)


RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.88)





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