SCO Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: SCO may experience a short-term rally due to increased geopolitical risks and bullish options sentiment, indicated by high implied volatility.




Bearish Case: Historically weak SCO returns and decreasing oil demand point to a potential downward trend, further emphasized by rising volatility concerns.




Potential Outcomes: SCO could maintain current levels (30%), experience minor increases (40%), or face declines (30%) due to ongoing economic pressures.




Trading Oracle: Consider a bearish strategy with Helium Short Volatility. Sell $18 calls, buy $20 calls, expiring April 2025. Leverage high implied volatility for a favorable risk-reward profile with a focus on potential decline or stagnation.



February 07, 2025


ProShares UltraShort Bloomberg Crude Oil Forecast

SCO        ProShares UltraShort Bloomberg Crude Oil











Correlated Assets

Assets that tend to move strongly with SCO



FE Forecast + Options Trading Strategies   FE  Firstenergy (0.69)


SO Forecast + Options Trading Strategies   SO  Southern (0.68)


VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.67)


SBH Forecast + Options Trading Strategies   SBH  Sally Beauty (0.66)


DRIP Forecast + Options Trading Strategies   DRIP  Direxion Daily S&P Oil & Gas Exp. & Prod. (0.66)



Uncorrelated Assets

Assets with little price relationship to SCO



VNDA Forecast + Options Trading Strategies   VNDA  Vanda Pharmaceuticals (-0.0)


DAVE Forecast + Options Trading Strategies   DAVE  Dave (0.0)


FXC Forecast + Options Trading Strategies   FXC  Invesco CurrencyShares Canadian Dollar (0.01)


ABEV Forecast + Options Trading Strategies   ABEV  Ambev (0.01)


ZD Forecast + Options Trading Strategies   ZD  Ziff Davis (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against SCO



AAP Forecast + Options Trading Strategies   AAP  Advance Auto Parts (-0.61)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.64)


PTEN Forecast + Options Trading Strategies   PTEN  Patterson-UTI Energy (-0.65)


OVV Forecast + Options Trading Strategies   OVV  Ovintiv (-0.7)


BNO Forecast + Options Trading Strategies   BNO  United States Commodity Funds LLC - United States Brent Crude Oil (-0.98)









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