SOI Forecast


Bullish Case: SOI has displayed significant recent upward momentum with a 56.9% rise in the past month, supported by favorable technical indicators such as a golden cross and positive earnings outlooks [Yahoo].


Bearish Case: Extensive historical volatility and frequent underperformance indicate a high likelihood of SOI returning to negative territory, as suggested by the large red areas in the historical return surface [SOI Price Return Surface].


Potential Outcomes:

1. Sustained price rally due to positive market sentiment (30%).

2. Stagnation in price due to market skepticism (50%).

3. Price decline driven by financial distress (20%).


Trading Oracle: Initiate a bull put credit spread expiring November 2024. Sell the 7.50 Puts and buy the 5.00 Puts. This strategy leverages current high implied volatility and capitalizes on near-term bullish trends while managing risk. High reward:risk and a favorable probability of profit.


July 18, 2024


Solaris Oilfield Infrastructure Forecast

SOI      Solaris Oilfield Infrastructure











Correlated Assets

Assets that tend to move strongly with SOI



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.47)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.28)



Uncorrelated Assets

Assets with little price relationship to SOI



VFC Forecast + Options Trading Strategies   VFC  VF (0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.28)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.28)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.47)



Anticorrelated Assets

Assets that tend to move strongly against SOI



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.47)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.28)


VFC Forecast + Options Trading Strategies   VFC  VF (0.18)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.28)





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