USB Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: USB's focus on digital transformation and recent strategic adjustments could enhance profitability, leading to strong future performance.




Bearish Case: Economic uncertainties and potential regulatory impacts may weigh on USB, amplifying downside risks amidst volatile market conditions.




Potential Outcomes: USB may benefit from financial sector recovery (40%), face continued headwinds (35%), or result from mean reversion (15%). External shocks could drive sharp losses (10%).




Trading Oracle: Utilize a long call debit spread: buy USB's 50/55 calls expiring June 2025. The volatility surface supports long vol trades with high reward:risk. Probable uptrend offers 70% profit probability with positive edge.



January 31, 2025


U.S. Bancorp. Forecast

USB        U.S. Bancorp.











Correlated Assets

Assets that tend to move strongly with USB



DPST Forecast + Options Trading Strategies   DPST  Direxion Daily Regional Banks Bull 3X Shares (0.93)


PH Forecast + Options Trading Strategies   PH  Parker-Hannifin (0.91)


UDOW Forecast + Options Trading Strategies   UDOW  ProShares UltraPro Dow30 (0.91)


UWM Forecast + Options Trading Strategies   UWM  ProShares Ultra Russell2000 (0.91)


DDM Forecast + Options Trading Strategies   DDM  ProShares Ultra Dow30 (0.91)



Uncorrelated Assets

Assets with little price relationship to USB



CZR Forecast + Options Trading Strategies   CZR  Caesars Entertainment (0.0)


PATH Forecast + Options Trading Strategies   PATH  UiPath (-0.01)


YELP Forecast + Options Trading Strategies   YELP  Yelp (-0.01)


VOD Forecast + Options Trading Strategies   VOD  Vodafone (-0.02)


FRSH Forecast + Options Trading Strategies   FRSH  Freshworks (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against USB



TNK Forecast + Options Trading Strategies   TNK  Teekay Tankers (-0.76)


NEP Forecast + Options Trading Strategies   NEP  NextEra Energy (-0.78)


BIIB Forecast + Options Trading Strategies   BIIB  Biogen (-0.79)


ASML Forecast + Options Trading Strategies   ASML  New York Shares (-0.79)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.81)









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