WOOF Forecast


Bullish Case: Recent executive leadership changes and insider buying indicate a potential strategic turnaround, supporting a possible rebound in stock price from current lows.


Bearish Case: Persistent high volatility, competitive e-commerce pressures, and a weak financial position suggest continued downside risks for WOOF.


Potential Outcomes:

1) Strategic turnaround: 25%,

2) Continued price decline: 35%,

3) Flat performance: 30%,

4) Unexpected positive news: 10%. These probabilities balance internal changes against external pressures.


Trading Oracle: Execute a short-term bearish credit spread by selling the 4.00 strike call and buying the 5.00 strike call expiring in August 2024. This strategy capitalizes on elevated implied volatility and systematic underperformance. Optimized high reward:risk ratio and high probability of profit in the current environment.


July 12, 2024


Petco Health and Wellness Forecast

WOOF      Petco Health and Wellness











Correlated Assets

Assets that tend to move strongly with WOOF



VFC Forecast + Options Trading Strategies   VFC  VF (0.58)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.46)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.21)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.5)



Uncorrelated Assets

Assets with little price relationship to WOOF



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.21)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.46)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.5)


VFC Forecast + Options Trading Strategies   VFC  VF (0.58)



Anticorrelated Assets

Assets that tend to move strongly against WOOF



VFC Forecast + Options Trading Strategies   VFC  VF (0.58)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.46)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.21)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.5)





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