CMI Forecast + Trading Strategies


Bullish Case: Cummins' strong financials, investment in clean-energy tech, and positive future outlook bolster bullish sentiment. Historical consistency and solid leadership further support a potentially favorable price movement.


Bearish Case: Lingering governance issues, insider trading concerns, and potential market volatility present downside risks. Elevated options implied volatility highlights investor uncertainty, indicating possible short-term dips.


Potential Outcomes:

1) Continued Clean-energy growth (60%).

2) Short-term dips from market corrections and governance issues (30%).

3) Mixed performance with mean reversion characteristics (10%).


Trading Oracle: Adopt a medium-term bullish stance with a debit spread strategy. Buy near-the-money Sep 2024 call options, and sell out-of-the-money Jan 2025 calls to capture upside while hedging risk. This approach leverages current market sentiment and favorable implied volatility.


July 16, 2024


Cummins Forecast

CMI      Cummins











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