WB Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: WB's price has increased 16% over two months, with strong call option volume suggesting increasing market optimism.




Bearish Case: Regulatory scrutiny in China and historical negative returns over multi-year periods pose significant downside risks.




Potential Outcomes:

1. Price increase due to optimism (30% chance).

2. Price decrease due to regulatory issues (50%).

3. Price stagnation (20%).




Trading Oracle:
Utilize Bearish Long Volatility Strategy. Buy OOTM put options to profit from high implied volatility and regulatory uncertainty. This exploits the volatility surface's insights on potential downward movements and high IV spikes. Protect against adverse regulatory developments impacting price.



March 14, 2025


Weibo Forecast

WB        Weibo











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