HIE Forecast


Bullish Case: HIE has demonstrated consistent medium-term price growth, up 11.1% year-over-year. Market stability and economic recovery could attract income-seeking investors, driving higher returns.


Bearish Case: HIE's historical returns show significant variability, and mixed recent performance could result in future flat or negative returns if economic catalysts remain insufficient.


Potential Outcomes:

1. Continued flat performance (40%) due to external economic uncertainties.

2. Modest gains (35%) driven by improved economic conditions.

3. Significant declines (25%) if economic downturns worsen.


Trading Oracle: Sell credit spreads (Helium Short Volatility) based on flat performance. Sell $11.50 call, buy $12 call, 3-month outlook. Edge in premium decay given flat forecast. High probability of profit and favorable reward:risk ratio.


July 23, 2024


Miller/Howard High Income Equity Forecast

HIE      Miller/Howard High Income Equity











Correlated Assets

Assets that tend to move strongly with HIE



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.94)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.46)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.66)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)



Uncorrelated Assets

Assets with little price relationship to HIE



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.46)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.66)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.94)



Anticorrelated Assets

Assets that tend to move strongly against HIE



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.94)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.46)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.66)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)





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