EC Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: EC's price shows a strong mean reversion tendency and potential for rebound due to undervaluation, evidenced by a 33% increase over 90 days and rising call option volume indicating investor optimism.




Bearish Case: Geopolitical tensions, environmental concerns, and regulatory hurdles could pressure EC's price downwards, coupled with high implied volatility and put option activity, suggesting market uncertainty.




Potential Outcomes:

1. Market downturn (50% - -15%).

2. Positive earnings (30% - +15%).

3. Regulatory breakthroughs (20% - +10%).

4. Geopolitical easing (10% - +12%).




Trading Oracle:

A Bearish Long Volatility strategy is optimal due to EC's high implied volatility and geopolitical risk. Positioning with OOTM put options captures potential downturn and profit from volatility spikes, factoring in a probable negative drift.



March 30, 2025


Ecopetrol SA Forecast

EC        Ecopetrol SA











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Anticorrelated Assets

Assets that tend to move strongly against EC



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