DAR Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: Sustainable sector positioning and low market-implied volatility suggest potential for price rebound and demand growth.




Bearish Case: High operational costs and mean-reverting historical price trends may lead to sustained bearish pressure and low returns.




Potential Outcomes: Revenue growth in sustainability (50%), expense rise (40%), price stability (10%) align with volatility patterns.




Trading Oracle: A bearish outlook favors a credit call spread: sell the $40 call, buy the $42.50 call, expiring in July 2025. Implied volatility is high, offering premium capture with defined risk.



January 21, 2025


Darling Ingredients Forecast

DAR        Darling Ingredients











Correlated Assets

Assets that tend to move strongly with DAR



PSX Forecast + Options Trading Strategies   PSX  Phillips 66 (0.78)


ARVN Forecast + Options Trading Strategies   ARVN  Arvinas (0.78)


SLB Forecast + Options Trading Strategies   SLB  Schlumberger (0.77)


ABSI Forecast + Options Trading Strategies   ABSI  Absci (0.75)


DIN Forecast + Options Trading Strategies   DIN  Dine Brands (0.75)



Uncorrelated Assets

Assets with little price relationship to DAR



TSN Forecast + Options Trading Strategies   TSN  Tyson Foods (0.0)


KRP Forecast + Options Trading Strategies   KRP  Kimbell Royalty Partners (-0.0)


DELL Forecast + Options Trading Strategies   DELL  Dell (0.0)


VOYA Forecast + Options Trading Strategies   VOYA  Voya Financial (-0.01)


GTLS Forecast + Options Trading Strategies   GTLS  Chart Industries (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against DAR



GLW Forecast + Options Trading Strategies   GLW  Corning (-0.66)


ONON Forecast + Options Trading Strategies   ONON  On (-0.67)


BSX Forecast + Options Trading Strategies   BSX  Boston Scientific (-0.67)


RKLB Forecast + Options Trading Strategies   RKLB  Rocket Lab USA (-0.68)


GLNG Forecast + Options Trading Strategies   GLNG  Golar Lng (-0.7)









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