TALO Forecast


Bullish Case: Talos Energy has significant insider buying and a recent large acquisition, suggesting potential upside. The price return surfaces indicate positive returns are possible under certain conditions.


Bearish Case: Talos Energy's flat recent price action, low implied volatility, and cybersecurity threats could dampen its stock performance. Historical return data show areas of significant downside risk.


Potential Outcomes: 50% chance of upward movement due to insider confidence and recent acquisitions. 30% probability of continued flat trading with low volatility. 20% likelihood of decline due to cybersecurity or operational failures.


Trading Oracle: Execute a 3-month bullish debit spread by buying $12.50 calls and selling $15.00 calls, leveraging insider activity and potential acquisition synergies. This strategy provides favorable reward-to-risk while managing downside exposure.


July 16, 2024


Talos Energy Forecast

TALO      Talos Energy











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LI Forecast + Options Trading Strategies   LI  Li Auto (0.76)


VFC Forecast + Options Trading Strategies   VFC  VF (0.66)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.04)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.74)



Uncorrelated Assets

Assets with little price relationship to TALO



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.04)


VFC Forecast + Options Trading Strategies   VFC  VF (0.66)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.74)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.76)



Anticorrelated Assets

Assets that tend to move strongly against TALO



LI Forecast + Options Trading Strategies   LI  Li Auto (0.76)


VFC Forecast + Options Trading Strategies   VFC  VF (0.66)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.04)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.74)





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