SHW Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: SHW maintains strong fundamentals and positive sentiment, with optimistic forecasts driving potential rebounds from recent lows, supported by strategic growth positioning (Helium,Helium).




Bearish Case: The continued housing market weakness, elevated P/B ratio, and potential operational disruptions pose risks to performance, maintaining a cautious outlook (Helium,Helium).




Potential Outcomes:

1. Market recovery supports sustained growth (50%). Helium

2. Prolonged housing market weakness impacts negatively (30%). Helium

3. Volatility and unexpected disruptions present risks (20%). Helium




Trading Oracle: Explore short volatility strategies for SHW using credit spreads. Sell $330C, buy $350C to leverage high implied volatility with a SAT risk:reward. Aligns with current neutral market stance. Short-term outlook of 30 days. Capture premium due to apparent implied volatility edge ().



January 11, 2025


Sherwin-Williams Forecast

SHW        Sherwin-Williams











Correlated Assets

Assets that tend to move strongly with SHW



VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.93)


MAS Forecast + Options Trading Strategies   MAS  Masco (0.92)


ITB Forecast + Options Trading Strategies   ITB  BTC iShares U.S. Home Construction (0.88)


TPG Forecast + Options Trading Strategies   TPG  TPG (0.87)


CBRE Forecast + Options Trading Strategies   CBRE  CBRE (0.87)



Uncorrelated Assets

Assets with little price relationship to SHW



AMC Forecast + Options Trading Strategies   AMC  AMC Entertainment (0.0)


UWMC Forecast + Options Trading Strategies   UWMC  UWM Holdings Corporation (-0.01)


LCID Forecast + Options Trading Strategies   LCID  Lucid (0.01)


IOVA Forecast + Options Trading Strategies   IOVA  Iovance Biotherapeutics (-0.01)


TS Forecast + Options Trading Strategies   TS  Tenaris S.A. (0.01)



Anticorrelated Assets

Assets that tend to move strongly against SHW



INDI Forecast + Options Trading Strategies   INDI  Indie Semiconductor (-0.73)


AAP Forecast + Options Trading Strategies   AAP  Advance Auto Parts (-0.73)


ETR Forecast + Options Trading Strategies   ETR  Entergy (-0.74)


ASML Forecast + Options Trading Strategies   ASML  New York Shares (-0.75)


BLDP Forecast + Options Trading Strategies   BLDP  Ballard Power Systems (-0.76)









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