BAM Forecast


Bullish Case: Bullish factors include favorable acquisition outlook, attractive historical returns for 1-2 year holding periods, and positive sentiment driven by recent strategic moves.


Bearish Case: Bearish factors involve risk of acquisition failure, macroeconomic headwinds, and recent flat price action which might impair investor confidence and sentiment.


Potential Outcomes:

1. Acquisition success boosting returns (40%).

2. Loss of strategic acquisitions hindering growth (30%).

3. Continuation of flat price action (20%).

4. Recession reducing stock value (10%).


Trading Oracle: Initiate a credit spread strategy: Sell short-term $37.5 puts and buy $35 puts, leveraging higher implied volatility relative to Helium's forecast. Target a 3-6 month horizon, exploiting Helium's positive edge and historical mean reversion for a high probability-of-profit.


July 23, 2024


Brookfield Asset Forecast

BAM      Brookfield Asset











Correlated Assets

Assets that tend to move strongly with BAM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.7)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.27)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.42)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.43)



Uncorrelated Assets

Assets with little price relationship to BAM



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.27)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.42)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.43)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.7)



Anticorrelated Assets

Assets that tend to move strongly against BAM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.7)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.27)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.42)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.43)





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