BMI Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Strong utility demand and favorable historical returns suggest solid growth prospects.




Bearish Case: High valuations and backwardation in volatility indicate potential downside risks.




Potential Outcomes: 30% chance of growth above expectations, 40% moderate growth, 30% unexpected downturn.




Trading Oracle: Initiate a bearish credit spread by selling the April $210 Call and buying the $220 Call. High backwardation and low current volatility signal potential downside with limited risk. Target a 1-2 month horizon for optimal profitability.



February 25, 2025


Badger Meter Forecast

BMI        Badger Meter











Correlated Assets

Assets that tend to move strongly with BMI



GVA Forecast + Options Trading Strategies   GVA  Granite Construction (0.9)


TT Forecast + Options Trading Strategies   TT  Trane (0.9)


COOP Forecast + Options Trading Strategies   COOP  Mr. Cooper (0.89)


AXP Forecast + Options Trading Strategies   AXP  American Express (0.89)


CNX Forecast + Options Trading Strategies   CNX  CNX Resources (0.89)



Uncorrelated Assets

Assets with little price relationship to BMI



LEN Forecast + Options Trading Strategies   LEN  Lennar (0.0)


BLBD Forecast + Options Trading Strategies   BLBD  Blue Bird (-0.01)


ARKG Forecast + Options Trading Strategies   ARKG  ARK Investment Management LLC - ARK Genomic Revolution (-0.02)


INTU Forecast + Options Trading Strategies   INTU  Intuit (-0.02)


PPH Forecast + Options Trading Strategies   PPH  VanEck Pharmaceutical (0.02)



Anticorrelated Assets

Assets that tend to move strongly against BMI



BP Forecast + Options Trading Strategies   BP  BP (-0.8)


OXY Forecast + Options Trading Strategies   OXY  Occidental Petroleum (-0.81)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.81)


AVNW Forecast + Options Trading Strategies   AVNW  Aviat Networks (-0.85)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.88)









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