FLOT Forecast


Bullish Case: Rising implied volatility suggests increasing market demand for FLOT derivatives, indicating potential upward price momentum. A shift towards decreasing interest rates could boost FLOT, enhancing returns on floating-rate bonds.


Bearish Case: Current bearish sentiment prevails with implied volatility indicating significant negative expectations. If interest rates continue rising, FLOT may suffer, posing risks for investors relying on fixed income stability.


Potential Outcomes:

1. Market stabilizes, 30% probability, leading to modest price gains.

2. Interest rate hikes persist, 50% probability, causing FLOT to dip below $50.

3. Economic recovery drives up demand for bonds, 20% probability, lifting FLOT beyond $55.


Trading Oracle: Consider a bullish debit spread by buying FLOT 52.00 C and selling 55.00 C, taking advantage of potential price rises and volatility increases. Given moderate bullish sentiment over the next 60 days, this strategy targets high reward with controlled risk.


July 24, 2024


BTC iShares Floating Rate Forecast

FLOT      BTC iShares Floating Rate











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ACGL Forecast + Options Trading Strategies   ACGL  Arch (0.78)


DXJ Forecast + Options Trading Strategies   DXJ  WisdomTree Japan Hedged Equity (0.78)


PG Forecast + Options Trading Strategies   PG  Procter & Gamble (0.78)



Uncorrelated Assets

Assets with little price relationship to FLOT



AAPL Forecast + Options Trading Strategies   AAPL  Apple (0.0)


TTC Forecast + Options Trading Strategies   TTC  Toro (-0.0)


MGM Forecast + Options Trading Strategies   MGM  MGM Resorts International (0.0)


KOLD Forecast + Options Trading Strategies   KOLD  ProShares UltraShort Bloomberg Natural Gas (0.0)


DK Forecast + Options Trading Strategies   DK  Delek US (0.0)



Anticorrelated Assets

Assets that tend to move strongly against FLOT



IVOL Forecast + Options Trading Strategies   IVOL  Quadratic Interest Rate Volatility And Inflation (-0.79)


YCL Forecast + Options Trading Strategies   YCL  ProShares Ultra Yen (-0.8)


LEG Forecast + Options Trading Strategies   LEG  Leggett & Platt (-0.81)


FUBO Forecast + Options Trading Strategies   FUBO  fuboTV (-0.82)


CNMD Forecast + Options Trading Strategies   CNMD  Conmed (-0.82)





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