CP Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: CP's strategic expansion and robust historical growth support a bullish outlook. Lower competition barriers post-merger enhance revenue potential.




Bearish Case: High volatility and integration challenges post-merger may negatively impact CP's operational efficiency, posing a downside risk.




Potential Outcomes:

1) Mean reversion (60%).

2) Price decline due to labor tensions (20%).

3) Strategic gains improve outlook (20%).




Trading Oracle: Consider a bullish short volatility stance via 30-day short put credit spreads around $70 to $75 strikes, capitalizing on mean reversion and current volatility structure. This offers a high reward:risk ratio and an edge in the range-bound environment.



January 14, 2025


Canadian Pacific Railway Forecast

CP        Canadian Pacific Railway











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