WEED Forecast


Bullish Case: WEED shows promising signs, with a 42.0% increase from last year and top implied volatility for call options suggesting potential for an uptrend. Positive societal shifts towards legalization boost the bullish outlook.


Bearish Case: Historical data shows a -86.3% drop over two years, and uncertainty in regulatory environments can negatively impact growth. Current implied volatility indicates elevated market uncertainty for WEED.


Potential Outcomes:

1) Favorable regulation boosts WEED (30%).

2) Economic downturn causes decline (40%).

3) Sector innovation leads to growth (15%).

4) Market shocks impact prices (15%).


Trading Oracle: Opt for call debit spreads to capture potential bullish movement over the next 3-6 months. Focus on strikes around $35-$40, leveraging high implied volatility for a balanced risk-reward profile. Monitor regulatory updates and market sentiment closely.


July 17, 2024


 Forecast

WEED      











Correlated Assets

Assets that tend to move strongly with WEED



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.6)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.41)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.5)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.59)



Uncorrelated Assets

Assets with little price relationship to WEED



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.41)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.5)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.59)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.6)



Anticorrelated Assets

Assets that tend to move strongly against WEED



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.6)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.41)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.5)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.59)





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