FAZ Forecast


Bullish Case: A sudden financial crisis could spur a sharp increase in FAZ price. Given its leveraged nature, any significant instability could see FAZ retesting the $20-$25 range, offering an attractive upside.


Bearish Case: FAZ's long-term trend and current low volatility suggest downside risk remains high. Structural stability in the financial sector could further depress FAZ towards the $8.00-$9.00 range, continuing the existing downtrend.


Potential Outcomes:

1) FAZ Surge (20%): Unforeseen financial distress triggers a spike.

2) FAZ Dip (40%): Continued sector stability pushes prices lower.

3) FAZ Stable (40%): Incremental changes lead to minor price fluctuations. Both scenarios hinge on macroeconomic stability and market sentiment.


Trading Oracle: Implement a short volatility strategy considering the contango term structure and low market volatility. Sell out-the-money calls (e.g., Jan 2025 $13 calls) and buy further out protective calls. This balances high odds of profit with low-risk exposure. Maintain a 3-4 month outlook targeting 10-12% ROI.


July 02, 2024


Direxion Daily Financial Bear 3x Shares Forecast

FAZ      Direxion Daily Financial Bear 3x Shares











Correlated Assets

Assets that tend to move strongly with FAZ



SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (0.97)


SDOW Forecast + Options Trading Strategies   SDOW  ProShares UltraPro Short Dow30 (0.97)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (0.97)


DOG Forecast + Options Trading Strategies   DOG  ProShares Short Dow30 (0.96)


DXD Forecast + Options Trading Strategies   DXD  ProShares UltraShort Dow30 (0.96)



Uncorrelated Assets

Assets with little price relationship to FAZ



NVAX Forecast + Options Trading Strategies   NVAX  Novavax (-0.0)


RIOT Forecast + Options Trading Strategies   RIOT  Riot Blockchain (-0.0)


FSK Forecast + Options Trading Strategies   FSK  FS KKR (-0.0)


SMAR Forecast + Options Trading Strategies   SMAR  Smartsheet (-0.0)


IPI Forecast + Options Trading Strategies   IPI  Intrepid Potash (0.0)



Anticorrelated Assets

Assets that tend to move strongly against FAZ



IWD Forecast + Options Trading Strategies   IWD  iShares Russell 1000 Value (-0.98)


AMP Forecast + Options Trading Strategies   AMP  Ameriprise Financial (-0.98)


SPYV Forecast + Options Trading Strategies   SPYV  SPDR Portfolio S&P 500 Value (-0.99)


FAS Forecast + Options Trading Strategies   FAS  Direxion Daily Financial Bull 3x Shares (-1.0)


XLF Forecast + Options Trading Strategies   XLF  Financial Select Sector SPDR (-1.0)





Become a more profitable investor with AI optimized trading strategies






×

Chat with FAZ


 Ask any question about FAZ!