BKR Forecast + Trading Strategies


Bullish Case: BKR's recent strategic partnerships and technology advancements may boost revenue and investor confidence, particularly as clean energy projects gain momentum. These factors can drive stock prices higher, supported by a stable demand for oil services.


Bearish Case: BKR faces ongoing risks from declining rig counts, particularly in North America, and volatile oil prices may hinder growth. If market conditions worsen, this could lead to an underwhelming stock performance as demand for services declines.


Potential Outcomes:

1. 55% - Continued partnerships enhance growth;

2. 35% - Market volatility hurts stock;

3. 10% - Delays in project benefits impact performance. The historical data supports these probabilities, indicating how external factors can swing outcomes significantly.


Trading Oracle: Implement a bullish strategy: Buy the $36 call and sell the $37 call (expiration August 16, 2024). This creates a low-risk position that capitalizes on potential upward price movement, leveraging favorable implied volatility. With a target return that exceeds risk, maintain flexibility as conditions evolve.


July 26, 2024


Baker Hughes Forecast

BKR      Baker Hughes











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Uncorrelated Assets

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BAX Forecast + Options Trading Strategies   BAX  Baxter International (-0.0)


ETSY Forecast + Options Trading Strategies   ETSY  Etsy (0.0)


TEX Forecast + Options Trading Strategies   TEX  Terex (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against BKR



ESTC Forecast + Options Trading Strategies   ESTC  Elastic (-0.73)


VZ Forecast + Options Trading Strategies   VZ  Verizon Communications (-0.74)


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NKTX Forecast + Options Trading Strategies   NKTX  Nkarta (-0.78)


SLNO Forecast + Options Trading Strategies   SLNO  Soleno Therapeutics (-0.79)





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