KMB Forecast + Trading Strategies


Bullish Case: Kimberly-Clark's stable consumer staples market, enhanced growth strategies, and positive analyst upgrades signal potential for stock appreciation. Current term structure implies further stabilization.


Bearish Case: Concerns over insider sales, potential litigation like PFAS, and high implied volatility indicate risk. Unfavorable market conditions and mixed Q1 earnings impact future growth.


Potential Outcomes: 65% stabilization or modest growth due to cost management, strategic restructuring, and historical mean reversion. 35% downside due to market volatility, possible legal issues, and insider transactions pressures.


Trading Oracle: Execute bullish credit spreads by selling $140 strike puts and buying $136 strike puts expiring in 9 days. Captures premium from current high implied volatility, with market odds of profit at 84% and annual historical return of 9%.


July 12, 2024


Kimberly-Clark Forecast

KMB      Kimberly-Clark











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Assets that tend to move strongly with KMB



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.66)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.63)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.4)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.44)



Uncorrelated Assets

Assets with little price relationship to KMB



VFC Forecast + Options Trading Strategies   VFC  VF (-0.4)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.44)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.63)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.66)



Anticorrelated Assets

Assets that tend to move strongly against KMB



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.66)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.63)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.4)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.44)





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