TT Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: TT's commitment to sustainability and strong historical returns suggest continued growth potential amid rising demand for green products. Bullish options sentiment and positive implied volatility trends back this view.




Bearish Case: Concerns about overvaluation and macroeconomic uncertainties could limit TT's near-term upside, with implied volatility aligning with potential market corrections.




Potential Outcomes: 60% chance TT remains stable, driven by sustainability. 30% chance economic downturn affects growth. 10% chance of volatility-induced decline.




Trading Oracle: Employ a bullish debit spread: buy TT $390 calls and sell $400 calls for March expiry. This capitalizes on bullish sentiment and the sustainable demand outlook, offering solid risk/reward with moderate volatility.



January 17, 2025


Trane Forecast

TT        Trane











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CNX Forecast + Options Trading Strategies   CNX  CNX Resources (0.95)


KKR Forecast + Options Trading Strategies   KKR  KKR (0.95)


BSX Forecast + Options Trading Strategies   BSX  Boston Scientific (0.94)



Uncorrelated Assets

Assets with little price relationship to TT



GEL Forecast + Options Trading Strategies   GEL  Genesis Energy (-0.0)


CMC Forecast + Options Trading Strategies   CMC  Commercial Metals (0.01)


ONTO Forecast + Options Trading Strategies   ONTO  Onto Innovation (0.01)


FREY Forecast + Options Trading Strategies   FREY  FREYR Battery (0.01)


BHVN Forecast + Options Trading Strategies   BHVN  Biohaven Pharmaceutical (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against TT



SHLS Forecast + Options Trading Strategies   SHLS  Shoals (-0.89)


BLDP Forecast + Options Trading Strategies   BLDP  Ballard Power Systems (-0.89)


COTY Forecast + Options Trading Strategies   COTY  Coty (-0.89)


APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (-0.9)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.95)









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