STM Forecast


Bullish Case: STM's historical price data shows a consistent upward trend, and current AI price forecasts indicate a +1.4% outlook. Holding for longer periods has shown high returns based on historical data.


Bearish Case: STM is down 18.7% from last year, with a high price-to-book ratio indicating potential overvaluation. Recent data shows a mean-reverting price action and stagnant market conditions.


Potential Outcomes:

1) 50% chance of a moderate rebound in the next 12 months due to historical growth patterns and positive AI forecasts.

2) 25% likelihood of continued decline due to overvaluation and market saturation.


Trading Oracle: Deploy bullish debit spreads targeting October expiration with 41/45 and 43/47 call spreads. Current term structure favors a moderately increased implied volatility, suggesting managed exposure with a good reward:risk ratio and high probability of profit.


July 13, 2024


New York Shares Forecast

STM      New York Shares











Correlated Assets

Assets that tend to move strongly with STM



VFC Forecast + Options Trading Strategies   VFC  VF (0.7)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.61)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.29)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.53)



Uncorrelated Assets

Assets with little price relationship to STM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.29)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.53)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.61)


VFC Forecast + Options Trading Strategies   VFC  VF (0.7)



Anticorrelated Assets

Assets that tend to move strongly against STM



VFC Forecast + Options Trading Strategies   VFC  VF (0.7)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.61)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.29)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.53)





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