BWA Forecast


Bullish Case: BWA's EV initiatives and solid dividend yield offer potential long-term growth, despite recent declines. Low IV might provide an opportunity to buy calls cheaply.


Bearish Case: Weak market sentiment and high recent volatility suggest further downside risk. Insider selling and declining price trends add to bearish outlook.


Potential Outcomes:

1. (50%) Slight upward momentum over next 6 months driven by EV initiatives and strategic partnerships.

2. (30%) Downward trend due to persistent weak market sentiment.

3. (20%) Neutral trading environment.


Trading Oracle: Trade bullish debit spreads targeting $37.5 strikes, leveraging historically low IV around 30%. Medium-term outlook (6-12 months). Focus on potential EV sector growth and strategic partnership news. Monitor Q2 updates for re-evaluation.


July 23, 2024


BorgWarner Forecast

BWA      BorgWarner











Correlated Assets

Assets that tend to move strongly with BWA



VFC Forecast + Options Trading Strategies   VFC  VF (0.47)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.37)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.17)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.35)



Uncorrelated Assets

Assets with little price relationship to BWA



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.17)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.35)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.37)


VFC Forecast + Options Trading Strategies   VFC  VF (0.47)



Anticorrelated Assets

Assets that tend to move strongly against BWA



VFC Forecast + Options Trading Strategies   VFC  VF (0.47)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.37)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.17)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.35)





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