U Forecast + Trading Strategies


Bullish Case: Unity Software's robust technology stack and strong position in gaming engines promise long-term growth. The expected release of Unity 6 and potentially rebounding AR/VR market could propel growth.


Bearish Case: Operational struggles, high volatility, and lukewarm financial performance continue to weigh on investor sentiment. Developer distrust following pricing model missteps may slow revenue recovery.


Potential Outcomes:

1) Continued struggle and high volatility (~60%)

2) Potential price recovery with improved financials (~25%)

3) Strategic missteps leading to stagnation (~15%)


Trading Oracle: Trade bullish short volatility credit spreads due to elevated volatility and moderate potential upside. Sell 1 $16.0 put, buy 2 $15.0 puts expiring in ~7 days. Target: 1-2 weeks timeframe. High probability of profit (81%), positive edge, and attractive risk-reward ratio.


July 21, 2024


Unity Software Forecast

U      Unity Software











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VFC Forecast + Options Trading Strategies   VFC  VF (0.84)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.71)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.54)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.58)



Uncorrelated Assets

Assets with little price relationship to U



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.54)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.58)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.71)


VFC Forecast + Options Trading Strategies   VFC  VF (0.84)



Anticorrelated Assets

Assets that tend to move strongly against U



VFC Forecast + Options Trading Strategies   VFC  VF (0.84)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.71)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.54)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.58)





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