SO Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: Increased call volumes and mean-reverting price trends suggest potential upside, supported by stable implied volatilities.




Bearish Case: Helium's higher implied volatility suggests potential downside risks, while mean reversion indicates minimal immediate gains.




Potential Outcomes: 60% chance SO rises slightly due to stable demand; 25% it stabilizes amid earnings; 15% it drops on geopolitical instability.




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February 20, 2025


Southern Forecast

SO        Southern











Correlated Assets

Assets that tend to move strongly with SO



AFL Forecast + Options Trading Strategies   AFL  Aflac (0.93)


DTE Forecast + Options Trading Strategies   DTE  DTE Energy (0.92)


FE Forecast + Options Trading Strategies   FE  Firstenergy (0.91)


VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.9)


CCK Forecast + Options Trading Strategies   CCK  Crown Holdings (0.9)



Uncorrelated Assets

Assets with little price relationship to SO



ODFL Forecast + Options Trading Strategies   ODFL  Old Dominion Freight Line (-0.0)


FMC Forecast + Options Trading Strategies   FMC  FMC (-0.0)


VNDA Forecast + Options Trading Strategies   VNDA  Vanda Pharmaceuticals (0.01)


JOE Forecast + Options Trading Strategies   JOE  St. Joe (-0.01)


MCK Forecast + Options Trading Strategies   MCK  Mckesson (0.01)



Anticorrelated Assets

Assets that tend to move strongly against SO



SYNA Forecast + Options Trading Strategies   SYNA  Synaptics (-0.84)


BBWI Forecast + Options Trading Strategies   BBWI  Bath & Body Works (-0.84)


ETSY Forecast + Options Trading Strategies   ETSY  Etsy (-0.84)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.85)


AAP Forecast + Options Trading Strategies   AAP  Advance Auto Parts (-0.89)









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