XRX Forecast + Trading Strategies


Bullish Case: Xerox's innovation partnerships could drive technological advancements and operational efficiency, increasing investor confidence and profitability.


Bearish Case: High implied volatility, historical underperformance, and heavy put trading volume suggest persistent financial struggles and market skepticism.


Potential Outcomes: 40% high implied volatility drives stock volatility; 35% financial difficulties persist; 25% Tech advancements lead to growth.


Trading Oracle: Initiate a short volatility trade with a neutral stance. Consider selling 2 $12.0 strike put options and buying 5 $10.0 strike put options expiring in ~30 days. High probability of profit (75%) from premium decay. Positive annual historical return of 8%.


July 18, 2024










Correlated Assets

Assets that tend to move strongly with XRX



VFC Forecast + Options Trading Strategies   VFC  VF (0.33)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.31)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.06)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.2)



Uncorrelated Assets

Assets with little price relationship to XRX



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.06)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.2)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.31)


VFC Forecast + Options Trading Strategies   VFC  VF (0.33)



Anticorrelated Assets

Assets that tend to move strongly against XRX



VFC Forecast + Options Trading Strategies   VFC  VF (0.33)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.31)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.06)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.2)





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