TBT Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: With TBT bullish risk 6% higher and favorable volatility surfaces, persistent inflation threats could elevate demand for inverse bond instruments, driving further upside.




Bearish Case: Despite the bullish sentiment, TBT shows mean-reverting tendencies with flat term structures. Economic stabilization or dovish policies could hinder momentum, risking downside correction.




Potential Outcomes:
  • Stabilization around current levels (55%) utilizing current mean-reversion signals.
  • Rally towards $40 on sustained inflation concerns (25%).
  • Decline below $35 with unexpected dovish pivots (20%).




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May 14, 2025


PowerShares UltraShort Lehman 20+ Yea Forecast

TBT        PowerShares UltraShort Lehman 20+ Yea











Correlated Assets

Assets that tend to move strongly with TBT



MNSO Forecast + Options Trading Strategies   MNSO  MINISO Group Holding Ltd (0.68)


BB Forecast + Options Trading Strategies   BB  BlackBerry (0.65)


FRSH Forecast + Options Trading Strategies   FRSH  Freshworks (0.61)


LAC Forecast + Options Trading Strategies   LAC  Lithium Americas (0.6)


ETR Forecast + Options Trading Strategies   ETR  Entergy (0.6)



Uncorrelated Assets

Assets with little price relationship to TBT



CODI Forecast + Options Trading Strategies   CODI  Compass Diversified (-0.0)


EWW Forecast + Options Trading Strategies   EWW  iShares MSCI Mexico (-0.0)


M Forecast + Options Trading Strategies   M  Macy's (0.01)


CRH Forecast + Options Trading Strategies   CRH  CRH Plc (0.01)


TVTX Forecast + Options Trading Strategies   TVTX  Travere Therapeutics (0.02)



Anticorrelated Assets

Assets that tend to move strongly against TBT



MFA Forecast + Options Trading Strategies   MFA  MFA Financial (-0.73)


VHT Forecast + Options Trading Strategies   VHT  Vanguard Health Care (-0.78)


XLV Forecast + Options Trading Strategies   XLV  Health Care Select Sector SPDR (-0.78)


UBT Forecast + Options Trading Strategies   UBT  ProShares Ultra 20+ Year Treasury (-0.86)


ZROZ Forecast + Options Trading Strategies   ZROZ  PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded (-0.87)









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