CWT Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: CWT may benefit from potential CPUC approvals and improved sentiment, leveraging low volatility expectations against market fears HeliumHelium.




Bearish Case: Continued financial struggles and high volatility imply downside risks, compounded by macroeconomic pressures and regulatory uncertainty HeliumHelium.




Potential Outcomes:
  • CPUC approval improves finances (40%) Helium.
  • Continued financial struggles (50%) Helium.
  • Regulatory setbacks decrease demand (25%) Helium.




Trading Oracle: Consider a bearish debit spread: buy CWT $50 puts, sell $45 puts, expiring in ~90 days. This strategy leverages high implied volatility for higher profit potential, aligning with current downtrend and social media concerns.



December 24, 2024


California Water Service Forecast

CWT        California Water Service











Correlated Assets

Assets that tend to move strongly with CWT



FE Forecast + Options Trading Strategies   FE  Firstenergy (0.84)


KO Forecast + Options Trading Strategies   KO  Coca-Cola (0.82)


KDP Forecast + Options Trading Strategies   KDP  Keurig Dr Pepper (0.82)


EIX Forecast + Options Trading Strategies   EIX  Edison International (0.81)


EXR Forecast + Options Trading Strategies   EXR  Extra Space Storage (0.79)



Uncorrelated Assets

Assets with little price relationship to CWT



HCC Forecast + Options Trading Strategies   HCC  Warrior Met Coal (0.01)


KRP Forecast + Options Trading Strategies   KRP  Kimbell Royalty Partners (-0.01)


CNXC Forecast + Options Trading Strategies   CNXC  Concentrix (-0.02)


IOVA Forecast + Options Trading Strategies   IOVA  Iovance Biotherapeutics (-0.03)


EH Forecast + Options Trading Strategies   EH  EHang Holdings Ltd - (-0.03)



Anticorrelated Assets

Assets that tend to move strongly against CWT



LAC Forecast + Options Trading Strategies   LAC  Lithium Americas (-0.66)


TREX Forecast + Options Trading Strategies   TREX  TREX Co. (-0.66)


TDOC Forecast + Options Trading Strategies   TDOC  Teladoc Health (-0.7)


FRSH Forecast + Options Trading Strategies   FRSH  Freshworks (-0.71)


IRTC Forecast + Options Trading Strategies   IRTC  iRhythm (-0.78)









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