UNTY Forecast


Bullish Case: UNTY's stable net interest margin (4%) and solid ROE (14.07%) showcase profitability despite minor Q2 income drop (1.4%). Robust deposit growth and positive pipeline signal future gains.


Bearish Case: Increasing interest expenses and modest loan growth present profitability challenges. Recent flat price action and Q2 revenue miss (-0.7%) indicate potential downward pressure.


Potential Outcomes:

1. Mid-to-high single-digit loan growth (60%)

2. Continued interest expense rise dampening profits (30%)

3. Unexpected market volatility affecting stock stability (10%).


Trading Oracle: Setup bullish debit spreads targeting a 3-6 month window due to solid fundamentals and positive income metrics. Strong deposit and loan pipelines back bullish sentiment. Favoring Helium Long Volatility on conservative implied vol options offers high reward:risk.


July 17, 2024


Unity Bancorp Forecast

UNTY      Unity Bancorp











Correlated Assets

Assets that tend to move strongly with UNTY



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.55)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.1)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.24)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.41)



Uncorrelated Assets

Assets with little price relationship to UNTY



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.1)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.24)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.41)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.55)



Anticorrelated Assets

Assets that tend to move strongly against UNTY



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.55)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.1)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.24)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.41)





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