TECK Forecast


Bullish Case: Teck's restructuring and increased focus on copper position it well for future growth. A robust demand for copper driven by green technologies bodes well for prices, especially after the Glencore coal divestiture, reducing liabilities.


Bearish Case: Regulatory scrutiny surrounding Teck's coal divestiture and ongoing environmental issues could dampen investor sentiment. Economic slowdowns, particularly in China, may reduce demand for copper, negatively impacting Teck's stock price.


Potential Outcomes:

1.

**Successful Regulatory Adjustments

** (40%): Teck navigates regulatory challenges post-divestiture smoothly.

2.

**Market Volatility

** (25%): Economic fluctuations lead to unpredictable copper prices.

3.

**M&A Activity

** (35%): Increased interest from major players, e.g., Rio Tinto, enhances stock performance.


Trading Oracle: Consider a **bullish debit spread** with TECK 50.00C and 53.00C, targeting the near-term expiring on August 16, 2024. High implied volatilities suggest potential for price increase as the market adjusts to upcoming regulatory news. This captures upside while protecting against moderate moves.


July 24, 2024


Teck Resources Forecast

TECK      Teck Resources











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Uncorrelated Assets

Assets with little price relationship to TECK



VFC Forecast + Options Trading Strategies   VFC  VF (-0.57)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.6)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.77)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.79)



Anticorrelated Assets

Assets that tend to move strongly against TECK



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.79)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.77)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.57)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.6)


TECK News over Time





Click points to explore news by date. News sentiment ranges from -10 (very negative) to +10 (very positive) where 0 is neutral.






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