BUI Forecast


Bullish Case: BUI's non-leveraged, option-enhanced strategy and strong historical returns make this fund attractive, especially in market downturns.


Bearish Case: High management fees and recent overperformance relative to other sectors could lead to future underperformance. Increased short interest may indicate bearish sentiment.


Potential Outcomes: Potential outcomes include continued strong returns (30%), a regression to mean performance (55%), or underperformance due to higher fees and market saturation (15%).


Trading Oracle: Utilize credit spreads to profit from mean-reverting tendencies. Sell a January 2025 $23/22 credit spread to target a range-bound strategy, aiming for a ~65% probability of profit while leveraging Helium Short Volatility. This strategy benefits from high current premiums due to historical mean reversion and elevated short interest.


June 30, 2024


BlackRock Utility Infrastructure & Power Opportunities Forecast

BUI      BlackRock Utility Infrastructure & Power Opportunities











Correlated Assets

Assets that tend to move strongly with BUI



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.19)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.44)



Uncorrelated Assets

Assets with little price relationship to BUI



VFC Forecast + Options Trading Strategies   VFC  VF (-0.19)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.28)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.44)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)



Anticorrelated Assets

Assets that tend to move strongly against BUI



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.19)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.44)





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