FANG Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Diamondback Energy's strong Permian Basin presence, merger integrations, and technological edge signal persistent upside. The current low price-to-book ratio and option skew favor a rebound.




Bearish Case: Volatile commodity prices, insider sales, and operational risks may suppress Diamondback's growth despite previous positive trends. Backwardation of implied volatility suggests persistent uncertainty.




Potential Outcomes:
  1. 40%: Price increases due to strategic synergies and firm market demand.
  2. 35%: Price remains stable amid mixed signals and market caution.
  3. 25%: Price declines from volatility and operational hurdles.



June 20, 2025


Diamondback Energy Forecast

FANG        Diamondback Energy











Correlated Assets

Assets that tend to move strongly with FANG



CVE Forecast + Options Trading Strategies   CVE  Cenovus Energy (0.96)


TDW Forecast + Options Trading Strategies   TDW  Tidewater Inc. - New (0.93)


STNG Forecast + Options Trading Strategies   STNG  Scorpio Tankers (0.93)


DOW Forecast + Options Trading Strategies   DOW  Dow (0.93)


KSS Forecast + Options Trading Strategies   KSS  Kohl's (0.92)



Uncorrelated Assets

Assets with little price relationship to FANG



STNE Forecast + Options Trading Strategies   STNE  StoneCo (0.0)


OWL Forecast + Options Trading Strategies   OWL  Blue Owl (-0.0)


XLK Forecast + Options Trading Strategies   XLK  Technology Select Sector SPDR (0.0)


VMC Forecast + Options Trading Strategies   VMC  Vulcan Materials (-0.01)


DHT Forecast + Options Trading Strategies   DHT  DHT (0.01)



Anticorrelated Assets

Assets that tend to move strongly against FANG



GILD Forecast + Options Trading Strategies   GILD  Gilead Sciences (-0.87)


CNP Forecast + Options Trading Strategies   CNP  Centerpoint Energy (-0.88)


VRSN Forecast + Options Trading Strategies   VRSN  Verisign (-0.88)


PM Forecast + Options Trading Strategies   PM  Philip Morris International (-0.88)


LRN Forecast + Options Trading Strategies   LRN  Stride (-0.89)









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