CWT Forecast


Bullish Case: CWT's consistent revenue growth, recent insider buying, and improving fundamentals indicate a potential upward price move. Historical price trends reflect low volatility, supporting a bullish outlook.


Bearish Case: High implied volatility and insider selling suggest potential downside risks. Mean-reverting nature and financial challenges indicate further price declines, especially under negative market conditions.


Potential Outcomes:

1. CPUC GRC approval boosts finances (35%).

2. Continued financial struggles hinder performance (50%).

3. Market volatility spikes, impacting price negatively (15%).


Trading Oracle: Bearish debit spread strategy optimal due to high implied volatility and financial headwinds. Buy $50 strike put and sell $45 strike put, expiring in ~90 days. This strategy leverages elevated volatilities for higher profit probability.


June 30, 2024


California Water Service Forecast

CWT      California Water Service











Correlated Assets

Assets that tend to move strongly with CWT



VFC Forecast + Options Trading Strategies   VFC  VF (0.33)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.21)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.13)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.14)



Uncorrelated Assets

Assets with little price relationship to CWT



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.13)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.14)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.21)


VFC Forecast + Options Trading Strategies   VFC  VF (0.33)



Anticorrelated Assets

Assets that tend to move strongly against CWT



VFC Forecast + Options Trading Strategies   VFC  VF (0.33)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.21)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.13)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.14)





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