OPI Forecast


Bullish Case: The merger with Diversified Healthcare Trust, if successful, could diversify assets and increase long-term growth prospects for OPI.


Bearish Case: Persistent financial instability, high vacancies, and potential failure of merger could further depress OPI's stock, amplifying its historical declining trend.


Potential Outcomes: Merger approval boosts value (30%); Continued high vacancies and financial instability leads to decline (40%); Strategic sales provide short-term boost (20%); Unfavorably refinancing terms depress stock (10%).


Trading Oracle: Sell the OPI 3.00 P/4.00 P Dec 2024 credit spreads to capitalize on anticipated flat price action. Given high implied volatilities, focus on September expiries. Bearish short-term outlook with high reward:risk probability.


July 18, 2024


Office Properties Income Forecast

OPI      Office Properties Income











Correlated Assets

Assets that tend to move strongly with OPI



VFC Forecast + Options Trading Strategies   VFC  VF (0.88)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.72)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.57)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.72)



Uncorrelated Assets

Assets with little price relationship to OPI



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.57)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.72)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.72)


VFC Forecast + Options Trading Strategies   VFC  VF (0.88)



Anticorrelated Assets

Assets that tend to move strongly against OPI



VFC Forecast + Options Trading Strategies   VFC  VF (0.88)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.72)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.57)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.72)





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