PPI Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: PPI could experience a bullish reversal if inflation stabilizes further and economic fundamentals improve, thus attracting more investment interest.




Bearish Case: Continued economic uncertainties and potential rate hikes may drive further declines in PPI, reflected in high implied volatility for protective puts.




Potential Outcomes:
  • 35% chance of mean reversion-driven recovery.
  • 45% chance of extended decline due to economic headwinds.
  • 20% chance of stabilization as market uncertainty persists.




Trading Oracle: Consider a bullish debit call spread with strikes at $15.00 and $16.00 expiring in 60 days. This leverages potential recovery while managing risk via defined max loss, capitalizing on current implied volatility dynamics.



January 30, 2025


Investment Managers Series Trust II - AXS Astoria Inflation Sensitive Forecast

PPI        Investment Managers Series Trust II - AXS Astoria Inflation Sensitive











Correlated Assets

Assets that tend to move strongly with PPI



MT Forecast + Options Trading Strategies   MT  New York Shares (0.83)


WY Forecast + Options Trading Strategies   WY  Weyerhaeuser (0.78)


LAC Forecast + Options Trading Strategies   LAC  Lithium Americas (0.77)


DAR Forecast + Options Trading Strategies   DAR  Darling Ingredients (0.76)


PATH Forecast + Options Trading Strategies   PATH  UiPath (0.74)



Uncorrelated Assets

Assets with little price relationship to PPI



BYRN Forecast + Options Trading Strategies   BYRN  Byrna (0.0)


LYV Forecast + Options Trading Strategies   LYV  Live Nation Entertainment (-0.01)


FREY Forecast + Options Trading Strategies   FREY  FREYR Battery (0.01)


ST Forecast + Options Trading Strategies   ST  Sensata (0.02)


VRNS Forecast + Options Trading Strategies   VRNS  Varonis Systems (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against PPI



KO Forecast + Options Trading Strategies   KO  Coca-Cola (-0.54)


ATGE Forecast + Options Trading Strategies   ATGE  Adtalem Global Education (-0.55)


BLBD Forecast + Options Trading Strategies   BLBD  Blue Bird (-0.56)


BNED Forecast + Options Trading Strategies   BNED  Barnes & Noble Education (-0.57)


GME Forecast + Options Trading Strategies   GME  Gamestop (-0.65)









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