ZG Forecast + Trading Strategies


Bullish Case: ZG's AI-powered tools and low down payment initiatives are boosting customer acquisition. With housing market stability projections and muted volatility, ZG is well-positioned for steady growth.


Bearish Case: ZG faces risks from high mortgage rates and affordability challenges. Persistently low renter conversion rates and sluggish housing activity could further depress revenue growth.


Potential Outcomes:

1. Zillow adapts, leveraging technology and partnerships for growth (60%).

2. Market headwinds curtail growth prospects (30%).

3. Stagnant conditions despite innovations (10%).


Trading Oracle: Trade credit spreads targeting short-term volatility contraction. Initiate a bull put spread by selling near-term $50 strike puts and buying $45 puts expiring in 35 days. This aligns with a bullish short-term outlook, exploiting relative stability in ZG's implied volatility. High probability of profit and positive edge.


July 14, 2024










Correlated Assets

Assets that tend to move strongly with ZG



VFC Forecast + Options Trading Strategies   VFC  VF (0.45)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.07)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.29)



Uncorrelated Assets

Assets with little price relationship to ZG



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.07)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.18)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.29)


VFC Forecast + Options Trading Strategies   VFC  VF (0.45)



Anticorrelated Assets

Assets that tend to move strongly against ZG



VFC Forecast + Options Trading Strategies   VFC  VF (0.45)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.07)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.29)





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