RRC Forecast + Trading Strategies


Bullish Case: Range Resources (RRC) benefits from increased gas demand and strong financial positions. Historical returns favor profit given extended holding periods. Helium’s bullish risk is higher, and implied volatility aligns with bullish momentum.


Bearish Case: RRC’s prospects heavily depend on volatile natural gas prices and mean-reverting historical price action suggesting limited upside. Low options trading volume indicates low market conviction.


Potential Outcomes: 70% chance: RRC maintains strong cash flow, benefiting shareholders. 20% chance: Rising gas prices drive volatility. 10% chance: Market volatility increases, affecting RRC negatively.


Trading Oracle: Execute a short volatility strategy focusing on selling 2 $34 strike put options and buying 3 $31 strike put options expiring in ~91 days. This exploits RRC’s stable outlook with an implied volatility edge, offering a high probability for profit and favorable reward-risk balance.


June 24, 2024


Range Resources Forecast

RRC      Range Resources











Correlated Assets

Assets that tend to move strongly with RRC



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.7)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.43)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.4)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.66)



Uncorrelated Assets

Assets with little price relationship to RRC



LI Forecast + Options Trading Strategies   LI  Li Auto (-0.4)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.43)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.66)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.7)



Anticorrelated Assets

Assets that tend to move strongly against RRC



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.7)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.43)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.4)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.66)





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