Maximize Returns with AI-Powered TECL Trading Strategies

Bullish Case: With market volatility stabilizing at lower levels, TECL's historical performance and strong bullish risk skew suggest potential for price appreciation. The current flat term structure indicates a series of stable growth scenarios ahead, encouraging upward movement.

Bearish Case: Despite recent stability, the high implied volatility for near-term options and a potential for economic headwinds could trigger corrections in TECL. Market caution reflected in option trading suggests risk of downside movement, especially if sentiment shifts suddenly.

Potential Outcomes:

1. Price increase to $90 (30% probability).

2. Flat movement around $85 (50% probability).

3. Drop to $75 (20% probability) due to external factors such as economic data releases.

Trading Oracle: Implement a credit spread strategy by selling the $93 call and buying the $95 call expiring in ~25 days. This approach capitalizes on high probability of profit (76%), with manageable risk exposure, while benefitting from market skew. Maintain a bullish stance with short volatility as the predominant strategy.

September 25, 2024