XRX Forecast + Trading Strategies


Bullish Case: Potential acquisition of Lexmark and strong innovation initiatives could drive future growth, evidenced by increasing call option volume and historical mean-reversion behavior.




Bearish Case: Ongoing financial challenges, halted operations in Russia, and elevated implied volatility signal potential downside risks, with a pronounced market skepticism and increasing put trading.




Potential Outcomes:
  • 30%: Successful integration drives growth.
  • 40%: Continued struggles limit performance.
  • 30%: Market stabilization following restructuring.




Trading Oracle: Adopt a bullish stance by engaging in a debit spread: buy $8 calls, sell $10 calls expiring in 38 days. This strategy leverages high implied volatility and mean-reversion, offering substantial upside potential and high probability of success. Monitor acquisition news for additional edge.



February 14, 2025


Xerox Forecast

XRX        Xerox











Correlated Assets

Assets that tend to move strongly with XRX



HDSN Forecast + Options Trading Strategies   HDSN  Hudson Technologies (0.96)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (0.95)


LEA Forecast + Options Trading Strategies   LEA  Lear (0.94)


COTY Forecast + Options Trading Strategies   COTY  Coty (0.94)


CNI Forecast + Options Trading Strategies   CNI  Canadian National Railway (0.94)



Uncorrelated Assets

Assets with little price relationship to XRX



URBN Forecast + Options Trading Strategies   URBN  Urban Outfitters (0.0)


DNN Forecast + Options Trading Strategies   DNN  Denison Mines (-0.0)


MBUU Forecast + Options Trading Strategies   MBUU  Malibu Boats (0.01)


KRP Forecast + Options Trading Strategies   KRP  Kimbell Royalty Partners (0.01)


EOLS Forecast + Options Trading Strategies   EOLS  Evolus (0.01)



Anticorrelated Assets

Assets that tend to move strongly against XRX



TMUS Forecast + Options Trading Strategies   TMUS  T-Mobile US (-0.92)


PM Forecast + Options Trading Strategies   PM  Philip Morris International (-0.92)


MLI Forecast + Options Trading Strategies   MLI  Mueller Industries (-0.93)


TPB Forecast + Options Trading Strategies   TPB  Turning Point Brands (-0.94)


PPC Forecast + Options Trading Strategies   PPC  Pilgrim's Pride (-0.94)









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