ITB Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: The flat term structure and lower Helium implied volatility indicate stabilizing market conditions. This, combined with historical growth patterns and housing demand, presents an upside potential.




Bearish Case: High put volume and recent price decline signal market skepticism. Elevated Helium's implied volatility suggests ongoing uncertainty and potential downside risks in ITB's price.




Potential Outcomes:
  • 60% chance ITB grows driven by housing demand recovery.
  • 30% chance of price decline due to economic pressures.
  • 10% stability from mean reversion.




Trading Oracle: Bullish Short Volatility Strategy: Given the flattening term structure and 71% odds of profit, selling ATM puts while buying more OOTM puts leverages on expected stability and receding volatility. Large put trading volumes confirm this play.



April 23, 2025


BTC iShares U.S. Home Construction Forecast

ITB        BTC iShares U.S. Home Construction











Correlated Assets

Assets that tend to move strongly with ITB



PHM Forecast + Options Trading Strategies   PHM  PulteGroup (0.99)


BZH Forecast + Options Trading Strategies   BZH  Beazer Homes USA (0.94)


LEN Forecast + Options Trading Strategies   LEN  Lennar (0.93)


OMC Forecast + Options Trading Strategies   OMC  Omnicom Group (0.93)


SMG Forecast + Options Trading Strategies   SMG  Scotts Miracle-Gro (0.91)



Uncorrelated Assets

Assets with little price relationship to ITB



UBER Forecast + Options Trading Strategies   UBER  Uber (-0.01)


SCO Forecast + Options Trading Strategies   SCO  ProShares UltraShort Bloomberg Crude Oil (-0.01)


SATS Forecast + Options Trading Strategies   SATS  EchoStar (0.01)


UGA Forecast + Options Trading Strategies   UGA  United States Commodity Funds (0.02)


MTZ Forecast + Options Trading Strategies   MTZ  Mastec (0.02)



Anticorrelated Assets

Assets that tend to move strongly against ITB



BB Forecast + Options Trading Strategies   BB  BlackBerry (-0.61)


DAN Forecast + Options Trading Strategies   DAN  Dana (-0.61)


ETR Forecast + Options Trading Strategies   ETR  Entergy (-0.62)


HIMX Forecast + Options Trading Strategies   HIMX  Himax (-0.63)


TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.64)









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