HES Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: HES benefits from Chevron's backing and increased Guyana production. Implied volatility suggests potential for strategic growth, supported by bullish option activity.




Bearish Case: Geopolitical tensions and regulatory pressures pose risks. Elevated implied volatility and flat price action suggest market uncertainty could hinder growth.




Potential Outcomes: Strategic growth in Guyana (60%), geopolitical tensions (25%), regulatory impacts (15%).




Trading Oracle: Initiate a bullish debit spread: buy HES $145 calls, sell $155 calls expiring in 30 days. Leverage implied volatility for high reward-risk, focusing on strategic growth in oil assets. Positive edge with favorable production outlook.



February 05, 2025


Hess Forecast

HES        Hess











Correlated Assets

Assets that tend to move strongly with HES



XOP Forecast + Options Trading Strategies   XOP  SPDR Oil & Gas Exploration and Production (0.92)


ALV Forecast + Options Trading Strategies   ALV  Autoliv (0.81)


ETR Forecast + Options Trading Strategies   ETR  Entergy (0.8)


NINE Forecast + Options Trading Strategies   NINE  Nine Energy Service (0.78)


OXY Forecast + Options Trading Strategies   OXY  Occidental Petroleum (0.78)



Uncorrelated Assets

Assets with little price relationship to HES



WHR Forecast + Options Trading Strategies   WHR  Whirlpool (-0.0)


CZR Forecast + Options Trading Strategies   CZR  Caesars Entertainment (0.02)


VNDA Forecast + Options Trading Strategies   VNDA  Vanda Pharmaceuticals (-0.02)


OWL Forecast + Options Trading Strategies   OWL  Blue Owl (-0.02)


BHVN Forecast + Options Trading Strategies   BHVN  Biohaven Pharmaceutical (0.02)



Anticorrelated Assets

Assets that tend to move strongly against HES



ICE Forecast + Options Trading Strategies   ICE  Intercontinental Exchange (-0.71)


BNED Forecast + Options Trading Strategies   BNED  Barnes & Noble Education (-0.72)


VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.72)


VXX Forecast + Options Trading Strategies   VXX  iPath Series B S&P 500 VIX Short-Term Futures (-0.73)


INFY Forecast + Options Trading Strategies   INFY  Infosys (-0.75)









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