DLR Forecast + Trading Strategies


Bullish Case: DLR continues to benefit from AI and cloud demand, with a stable term structure and robust institutional ownership supporting the price growth.


Bearish Case: Potential downside from high competition, economic downturns, and significant insider selling; the flat term structure suggests limited volatility opportunities.


Potential Outcomes: 60% chance of revenue growth from data center demand; 30% decline due to economic uncertainty; 10% mixed results from recent investments.


Trading Oracle: Trade bullish credit spreads via short-dated bull put spreads. Sell 1 $160 strike put and buy 2 $145 strike puts, expiring in ~35 days. With positive edge and 68% probability of profit, leverage DLR’s mean-reverting nature and stable volatility environment.


July 14, 2024


Digital Realty Forecast

DLR      Digital Realty











Correlated Assets

Assets that tend to move strongly with DLR



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.78)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.25)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.67)



Uncorrelated Assets

Assets with little price relationship to DLR



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.25)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.67)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.78)



Anticorrelated Assets

Assets that tend to move strongly against DLR



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.78)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.25)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.67)





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