SCO Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: With 64% higher call volume and 8% greater bullish risk across tenors, SCO could see upward movement, supported by mean reversion trends and geopolitical developments.




Bearish Case: Persistent historical declines and negative returns over several timelines, combined with high volatility, suggest downside risk if economic pressures continue.




Potential Outcomes: 35% chance of neutrality as flat trends persist; 40% chance of bearish movement due to volatility and historical patterns; 25% chance of a short-term rally by geopolitical shifts.




Trading Oracle: Consider Bearish Long Volatility strategy. High volatility and historical downward trends align with this approach, offering leverage on potential continued declines.



April 14, 2025


ProShares UltraShort Bloomberg Crude Oil Forecast

SCO        ProShares UltraShort Bloomberg Crude Oil











Correlated Assets

Assets that tend to move strongly with SCO



VXX Forecast + Options Trading Strategies   VXX  iPath Series B S&P 500 VIX Short-Term Futures (0.6)


VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (0.59)


FE Forecast + Options Trading Strategies   FE  Firstenergy (0.56)


ECL Forecast + Options Trading Strategies   ECL  Ecolab (0.55)


PPC Forecast + Options Trading Strategies   PPC  Pilgrim's Pride (0.54)



Uncorrelated Assets

Assets with little price relationship to SCO



IMO Forecast + Options Trading Strategies   IMO  Imperial Oil (-0.01)


CZR Forecast + Options Trading Strategies   CZR  Caesars Entertainment (-0.02)


AMC Forecast + Options Trading Strategies   AMC  AMC Entertainment (-0.02)


WCLD Forecast + Options Trading Strategies   WCLD  WisdomTree Cloud Computing (-0.02)


AZN Forecast + Options Trading Strategies   AZN  Astrazeneca (0.02)



Anticorrelated Assets

Assets that tend to move strongly against SCO



WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.57)


RMBS Forecast + Options Trading Strategies   RMBS  Rambus (-0.6)


BBWI Forecast + Options Trading Strategies   BBWI  Bath & Body Works (-0.6)


PTEN Forecast + Options Trading Strategies   PTEN  Patterson-UTI Energy (-0.68)


OVV Forecast + Options Trading Strategies   OVV  Ovintiv (-0.73)









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