CWCO Forecast


Bullish Case: CWCO has strong revenue growth, consistent dividends, and a solid 1.0 price-to-book ratio. Upcoming rate cuts may further boost profitability, while historical data suggests upward momentum.


Bearish Case: High implied volatilities and recent institutional sell-offs coupled with stagnant price action and potential inflation risks may dampen short-term performance. Overestimated earnings could lead to downside pressure.


Potential Outcomes:

1. Rate cut: 25% - boosts CWCO.

2. Continued inflation: 30% - lowers profitability.

3. Price stagnation: 20% - maintains current levels, mirroring historical volatility patterns.


Trading Oracle: Execute a bullish credit spread by selling the CWCO 11/15/2024 30.00 C and buying the 35.00 C. Leverage high implied volatility and Helium's positive outlook to capitalize on premium decay. Target holding period: 4 months; expect stable to mildly positive price action.


July 20, 2024


Consolidated Water Forecast

CWCO      Consolidated Water











Correlated Assets

Assets that tend to move strongly with CWCO



VFC Forecast + Options Trading Strategies   VFC  VF (0.31)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.27)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.44)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.63)



Uncorrelated Assets

Assets with little price relationship to CWCO



LI Forecast + Options Trading Strategies   LI  Li Auto (0.27)


VFC Forecast + Options Trading Strategies   VFC  VF (0.31)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.44)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.63)



Anticorrelated Assets

Assets that tend to move strongly against CWCO



VFC Forecast + Options Trading Strategies   VFC  VF (0.31)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.27)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.44)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.63)





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