DFEN Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: Rising geopolitical tensions and historical returns suggest potential for significant upside in DFEN, capitalizing on sector demand.




Bearish Case: High volatility and historical underperformance present risks, alongside market anxiety over leveraged positions in a volatile global climate.




Potential Outcomes:

1. Geopolitical tensions elevate DFEN: 60%

2. Volatility increases risks: 20%

3. Stable performance continues: 20%.




Trading Oracle: Implement a bullish long volatility play by buying a $34 call and selling a $35 call expiring in 35 days with high potential return based on historical performance and current low implied volatilities. This strategy leverages enhanced market conditions and optimal reward-to-risk ratio.



January 22, 2025


Direxion Daily Aerospace & Defense Bull 3X Shares Forecast

DFEN        Direxion Daily Aerospace & Defense Bull 3X Shares











Correlated Assets

Assets that tend to move strongly with DFEN



VTV Forecast + Options Trading Strategies   VTV  Vanguard Value (0.94)


TT Forecast + Options Trading Strategies   TT  Trane (0.93)


IWD Forecast + Options Trading Strategies   IWD  iShares Russell 1000 Value (0.93)


CLH Forecast + Options Trading Strategies   CLH  Clean Harbors (0.92)


COOP Forecast + Options Trading Strategies   COOP  Mr. Cooper (0.91)



Uncorrelated Assets

Assets with little price relationship to DFEN



BHVN Forecast + Options Trading Strategies   BHVN  Biohaven Pharmaceutical (-0.0)


UAN Forecast + Options Trading Strategies   UAN  CVR Partners (0.0)


VTRS Forecast + Options Trading Strategies   VTRS  Viatris (-0.0)


WPC Forecast + Options Trading Strategies   WPC  W. P. Carey (0.01)


IOVA Forecast + Options Trading Strategies   IOVA  Iovance Biotherapeutics (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against DFEN



AMR Forecast + Options Trading Strategies   AMR  Alta Mesa Resources (-0.81)


SHLS Forecast + Options Trading Strategies   SHLS  Shoals (-0.83)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.85)


APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (-0.86)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.9)









Become a more profitable investor with AI optimized trading strategies






×

Chat with DFEN


 Ask any question about DFEN!