CMI Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: CMI's strong fundamentals coupled with clean energy advancements and low implied volatility suggest potential upward movement, appealing to growth-focused investors.




Bearish Case: Market volatility and governance issues threaten CMI's stability, with high put volume indicating investor skepticism and potential for downside risk.




Potential Outcomes:

1. Continued clean-energy driven growth (60%)

2. Market volatility causing stabilization (30%)

3. Governance issues leading to decline (10%).




Trading Oracle: Bullish Short Volatility Strategy capitalizes on strong fundamentals and a favorable growth outlook. Selling ATM puts and buying OOTM puts provides a positive edge amidst stable implied volatility and attractive risk-reward ratio.



May 13, 2025


Cummins Forecast

CMI        Cummins











Correlated Assets

Assets that tend to move strongly with CMI



MTB Forecast + Options Trading Strategies   MTB  M & T (0.94)


UPST Forecast + Options Trading Strategies   UPST  Upstart (0.94)


AXP Forecast + Options Trading Strategies   AXP  American Express (0.93)


CRH Forecast + Options Trading Strategies   CRH  CRH Plc (0.93)


MAC Forecast + Options Trading Strategies   MAC  Macerich (0.91)



Uncorrelated Assets

Assets with little price relationship to CMI



SAN Forecast + Options Trading Strategies   SAN  Banco Santander (0.0)


BBWI Forecast + Options Trading Strategies   BBWI  Bath & Body Works (0.0)


CRSR Forecast + Options Trading Strategies   CRSR  Corsair Gaming (-0.01)


O Forecast + Options Trading Strategies   O  Realty Income (0.01)


EIX Forecast + Options Trading Strategies   EIX  Edison International (0.01)



Anticorrelated Assets

Assets that tend to move strongly against CMI



XP Forecast + Options Trading Strategies   XP  XP (-0.6)


TMDX Forecast + Options Trading Strategies   TMDX  Transmedics (-0.63)


EWW Forecast + Options Trading Strategies   EWW  iShares MSCI Mexico (-0.73)


PAGS Forecast + Options Trading Strategies   PAGS  PagSeguro Digital (-0.79)


UDN Forecast + Options Trading Strategies   UDN  Invesco DB US Dollar Index Bearish (-0.82)









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