RMR Forecast


Bullish Case: If RMR capitalizes on institutional interest and the upcoming potential rate cuts in late 2024, it could push the stock towards historical highs. Additionally, sustained positive cash flow from recent acquisitions may enhance investor sentiment.


Bearish Case: Continued flat price performance amid rising interest rates and potential economic downturn could lead to declines in RMR’s stock. Speculative fears about real estate investments may deter new capital inflows, compounding overall weaknesses.


Potential Outcomes:

1. Flat performance persists (60%).

2. Recovery driven by institutional interest and cash flow improvement (30%).

3. Market downturn exacerbating current trends (10%).


Trading Oracle: Utilizing a bearish outlook, consider selling credit spreads: sell the RMR 08/16/2024 25.00 C while simultaneously buying the 30.00 C to hedge. High implied volatility suggests this could yield significant premiums, maximizing risk-adjusted returns.


July 25, 2024


RMR Group Inc (The) - Forecast

RMR      RMR Group Inc (The) -











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Uncorrelated Assets

Assets with little price relationship to RMR



LI Forecast + Options Trading Strategies   LI  Li Auto (0.12)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.12)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.35)


VFC Forecast + Options Trading Strategies   VFC  VF (0.37)



Anticorrelated Assets

Assets that tend to move strongly against RMR



VFC Forecast + Options Trading Strategies   VFC  VF (0.37)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.12)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.12)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.35)





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