NRP Forecast


Bullish Case: With the Helium forecast showing higher implied volatility, and NRP's recent acquisition boosting future revenue streams, NRP’s mean-reverting nature suggests a potential price rebound.


Bearish Case: High trading volume in puts and a negative short-term price trend (-3.2% over 90 days) indicate potential downward pressure amid market uncertainty exceeding Helium's forecast.


Potential Outcomes: The likelihood scenarios show the most common returns range from -20% to +50%. Given multiple headwinds, expect volatility to persist.


Trading Oracle: Deploy a bearish debit spread by buying the 90.00 strike put and selling the 87.56 strike put with a 21-day outlook. This strategy benefits from increasing implied volatility and has a favorable risk-to-reward ratio, exploiting the edge provided by current trading biases and Helium's forecast.


June 30, 2024


Natural Resource Partners LP - Unit Forecast

NRP      Natural Resource Partners LP - Unit











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ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.68)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.08)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.65)



Uncorrelated Assets

Assets with little price relationship to NRP



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.08)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.65)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.68)



Anticorrelated Assets

Assets that tend to move strongly against NRP



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.68)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.08)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.52)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.65)





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