SCHH Forecast


Bullish Case: A reduction in interest rates could bolster SCHH as REITs benefit from lower financing costs. Additionally, increasing real estate demand post-pandemic supports potential price appreciation.


Bearish Case: Continued high interest rates threaten profit margins for REITs, potentially resulting in declining stock prices. Economic indicators suggest possible slowdowns, impacting investor sentiment and demand.


Potential Outcomes:

1. Interest Rate Cuts: 45% (positive for SCHH).

2. Stagnant Rates: 35% (neutral).

3. Economic Slowdown: 15% (negative impact).

4. Inflationary Shock: 5% (highly adverse).


Trading Oracle: Consider implementing a debit spread using the SCHH August $22.00 call and $21.00 call. This approach capitalizes on elevated implied volatility and positions for potential upward movement. Target a 30-50% profit with an exit strategy if earnings before the expiration indicate stronger-than-expected results.


July 25, 2024


Schwab U.S. REIT Forecast

SCHH      Schwab U.S. REIT











Correlated Assets

Assets that tend to move strongly with SCHH



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.55)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.07)


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


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.31)



Uncorrelated Assets

Assets with little price relationship to SCHH



VFC Forecast + Options Trading Strategies   VFC  VF (-0.07)


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


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.31)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.55)



Anticorrelated Assets

Assets that tend to move strongly against SCHH



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.55)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.07)


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


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.31)





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