BHE Forecast


Bullish Case: The JV for lithium extraction will pay off, driving BHE into higher growth phases and pushing the stock price further upwards. Helium's positive forecast of +1.45% corroborates this ([Chemical & Engineering News]).


Bearish Case: Mean reversion could lead to short-term pullbacks as shown by historical price returns and market uncertainties. High recent stock gains increase this possibility ([Helium], [Helium]).


Potential Outcomes:

1. Successful JV (30%) increases BHE’s valuation.

2. Stock mean reverts leading to pullback (50%).

3. Flat growth due to market uncertainties (20%) [Helium], [Chemical & Engineering News].


Trading Oracle: Trade credit spreads (Helium Short Volatility) with a cautious outlook. Execute Oct 2024 $40-$45 bear call spread. High IV difference shows advantage in premium collection. 2-6 months outlook fits mean reversion,,, .


July 18, 2024


Benchmark Electronics Forecast

BHE      Benchmark Electronics











Correlated Assets

Assets that tend to move strongly with BHE



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.92)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.38)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.67)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)



Uncorrelated Assets

Assets with little price relationship to BHE



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.38)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.67)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.92)



Anticorrelated Assets

Assets that tend to move strongly against BHE



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.92)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.38)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.67)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)





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