BBCP Forecast


Bullish Case: BBCP has strong institutional support, positive sector growth in infrastructure and residential markets, and stable UK operations despite macro challenges. Historical data indicates potential for moderate positive returns, especially in short to medium-term outlooks.


Bearish Case: BBCP faces commercial softness, high volatility, and recent underperformance relative to expectations. Market backwardation signals uncertainty, and recent flat price action suggests limited immediate upside potential.


Potential Outcomes:

1. Moderate growth (35%): Continued strength in infrastructure and residential segments.

2. Price stagnation (25%): Persistent macro headwinds.

3. Decline (40%): Commercial sector softness, interest rates, and market volatility lead to lower prices. Probabilities are weighted by recent performance and macro conditions.


Trading Oracle: Given BBCP’s high volatility and current market backwardation, utilize debit spreads (Helium Long Volatility) focusing on short to medium-term bullish call spreads. Target positions in the August or September 2024 expiries, considering the $7.50 or $10.00 strikes to maximize the potential return while managing risk effectively.


July 16, 2024


Concrete Pumping Forecast

BBCP      Concrete Pumping











Correlated Assets

Assets that tend to move strongly with BBCP



VFC Forecast + Options Trading Strategies   VFC  VF (0.6)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.58)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.35)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.49)



Uncorrelated Assets

Assets with little price relationship to BBCP



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.35)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.49)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.58)


VFC Forecast + Options Trading Strategies   VFC  VF (0.6)



Anticorrelated Assets

Assets that tend to move strongly against BBCP



VFC Forecast + Options Trading Strategies   VFC  VF (0.6)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.58)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.35)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.49)





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