NETL Forecast


Bullish Case: NETL's focus on innovative DAC technologies and potential lithium extraction from oil and gas wastewater could provide significant growth opportunities. Consistent occupancy and solid performance from EPRT suggests resilient revenue generation [dominionpost.com][wboy.com].


Bearish Case: Despite NETL’s innovation, the historical mean reversion and recent price decline suggest limited upside potential. The high market implied volatility indicates potential uncertainty and downside risk [Helium][Helium][Helium].


Potential Outcomes:

1. NETL successfully commercializes DAC (35%) [dominionpost.com];

2. Lithium extraction proves viable (30%) [wboy.com];

3. Continued mean reversion in price (60%) [Helium];

4. Increased market volatility affects price stability (75%) [Helium];

5. Further decline in real estate sector (40%) [defenseworld.net][Helium].


Trading Oracle: Sell call credit spreads around high implied vol. Consider the low delta option data . Given stable prices and higher uncertainty, spreads near $25-$26 strike price yield attractive premiums. Aim for 1-2 months out given historical mean reversion trends and current market volatility dynamics. Keep managing risk to ensure a high reward-to-risk ratio.


July 10, 2024


NETLease Corporate Real Estate Forecast

NETL      NETLease Corporate Real Estate











Correlated Assets

Assets that tend to move strongly with NETL



DEA Forecast + Options Trading Strategies   DEA  Easterly Government Properties (0.86)


DPST Forecast + Options Trading Strategies   DPST  Direxion Daily Regional Banks Bull 3X Shares (0.85)


BXP Forecast + Options Trading Strategies   BXP  Boston Properties (0.84)


WPC Forecast + Options Trading Strategies   WPC  W. P. Carey (0.83)


IVZ Forecast + Options Trading Strategies   IVZ  Invesco Ltd (0.82)



Uncorrelated Assets

Assets with little price relationship to NETL



XPEL Forecast + Options Trading Strategies   XPEL  Reg S (-0.0)


MED Forecast + Options Trading Strategies   MED  Medifast (0.0)


HRL Forecast + Options Trading Strategies   HRL  Hormel Foods (0.0)


WFRD Forecast + Options Trading Strategies   WFRD  Weatherford International plc - New (-0.0)


MCK Forecast + Options Trading Strategies   MCK  Mckesson (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against NETL



HPK Forecast + Options Trading Strategies   HPK  HighPeak Energy (-0.5)


TMV Forecast + Options Trading Strategies   TMV  Direxion Daily 20+ Year Treasury Bear 3X Shares (-0.54)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.61)


REK Forecast + Options Trading Strategies   REK  ProShares Short Real Estate (-0.66)


TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.77)





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