Price Forecast:

Bullish Case: WCC's term structure indicates increasing implied volatility over time, suggesting potential price movement upwards. Historical data shows a consistent trend toward positive returns, feeding bullish sentiments.

Bearish Case: High insider selling and market uncertainty reflect caution, with implied volatility across various strike prices indicating risk aversion. This could lead to downward pressure on WCC's price in the short term.

Potential Outcomes:

1. Price increase to $220 (50%).

2. Stabilization near current levels ($207, 30%).

3. Drop to $195 (20%). Probabilities based on historical price action and current volatility patterns.

Trading Oracle: Execute a credit spread by selling $210 calls and buying $220 calls, taking advantage of flat volatility. This position offers a high probability of profit (78%) due to low risk with a favorable market outlook. Target expiry in late January 2025 for maximum gains.

November 22, 2024