WTS Forecast


Bullish Case: The substantial institutional backing and solid earnings growth suggest that WTS has strong fundamentals. The upcoming ex-dividend date may attract buyers seeking income, enhancing demand.


Bearish Case: High implied volatility and recent insider selling signal potential short-term declines. The disparity between put and call options volume indicates heightened bearish sentiment in the market.


Potential Outcomes:

1. Price rebound post-dividend announcement - 40%;

2. Continued mean reversion leading to a dip - 35%;

3. Sustained bearish pressure from high volatility - 25%. These estimates reflect historical patterns and current market conditions.


Trading Oracle: Establish a bullish position using a debit spread with strikes at $200 and $220, targeting mid-September expiration. The current high implied volatility suggests a long volatility strategy. Aim for a target profit around a 2:1 ratio.


July 25, 2024


Watts Water Technologies, Inc. Forecast

WTS      Watts Water Technologies, Inc.











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PLAY Forecast + Options Trading Strategies   PLAY  Dave & Buster's Entertainment (0.85)


TREX Forecast + Options Trading Strategies   TREX  TREX Co. (0.84)



Uncorrelated Assets

Assets with little price relationship to WTS



DBX Forecast + Options Trading Strategies   DBX  Dropbox (0.0)


TWO Forecast + Options Trading Strategies   TWO  Two Harbors Investment (0.0)


WRBY Forecast + Options Trading Strategies   WRBY  Warby Parker (-0.0)


ILMN Forecast + Options Trading Strategies   ILMN  Illumina (-0.01)


VAC Forecast + Options Trading Strategies   VAC  Marriott Vacations Worldwide (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against WTS



RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.68)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.68)


AMC Forecast + Options Trading Strategies   AMC  AMC Entertainment (-0.69)


ACLS Forecast + Options Trading Strategies   ACLS  Axcelis (-0.71)


SARK Forecast + Options Trading Strategies   SARK  Tuttle Capital Short Innovation (-0.75)





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