FRI Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Lower interest rates and policy support point to REIT growth potential. Historical returns hint at gains with short holding periods for FRI.




Bearish Case: High implied volatility and recent price declines reflect market concerns, suggesting further downside risk if economic conditions deteriorate.




Potential Outcomes:

1. 30% chance of moderate gain (2-4%) as interest rates ease.

2. 40% likelihood of stagnation amid current volatility.

3. 30% chance of decline if market fears persist.




Trading Oracle: Consider a mean-reversion strategy with short straddles (selling both calls and puts) at $27 strike within two months. Attractive premiums capture high volatility, while mean-reverting behavior manages risk. Closely monitor for macroeconomic changes.



January 01, 2025


First Trust S&P REIT Index Forecast

FRI        First Trust S&P REIT Index











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EXR Forecast + Options Trading Strategies   EXR  Extra Space Storage (0.9)


CHRW Forecast + Options Trading Strategies   CHRW  C.H. Robinson Worldwide (0.87)


CBRE Forecast + Options Trading Strategies   CBRE  CBRE (0.87)


ICE Forecast + Options Trading Strategies   ICE  Intercontinental Exchange (0.86)



Uncorrelated Assets

Assets with little price relationship to FRI



SRPT Forecast + Options Trading Strategies   SRPT  Sarepta Therapeutics (0.02)


SKYT Forecast + Options Trading Strategies   SKYT  SkyWater Technology (-0.02)


IAC Forecast + Options Trading Strategies   IAC  IAC InterActiveCorp. (0.02)


CWH Forecast + Options Trading Strategies   CWH  Camping World (0.02)


ODFL Forecast + Options Trading Strategies   ODFL  Old Dominion Freight Line (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against FRI



TRIP Forecast + Options Trading Strategies   TRIP  TripAdvisor (-0.78)


PTEN Forecast + Options Trading Strategies   PTEN  Patterson-UTI Energy (-0.78)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.79)


RILY Forecast + Options Trading Strategies   RILY  B. Riley Financial (-0.79)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.79)









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