MFA Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: MFA's high dividend yield and mean-reverting trends suggest potential recovery. Increased institutional interest is likely to boost confidence.




Bearish Case: Sustained economic pressures and high implied volatility indicate continued downside risk, with limited recovery potential amidst lingering macro concerns.




Potential Outcomes:

1. (40%) Dividend appeal attracts investors, stabilizing price.

2. (30%) Economic challenges lead to further declines.

3. (30%) High volatility sparks unpredictable price movement.




Trading Oracle: The bearish long volatility strategy is optimal given current high IV and economic uncertainties. It exploits potential downside while benefiting from volatility expansion. Bearish Long Volatility Strategy



April 16, 2025


MFA Financial Forecast

MFA        MFA Financial











Correlated Assets

Assets that tend to move strongly with MFA



IFF Forecast + Options Trading Strategies   IFF  International Flavors & Fragrances (0.89)


JOE Forecast + Options Trading Strategies   JOE  St. Joe (0.85)


MPWR Forecast + Options Trading Strategies   MPWR  Monolithic Power System (0.85)


XLV Forecast + Options Trading Strategies   XLV  Health Care Select Sector SPDR (0.84)


ZROZ Forecast + Options Trading Strategies   ZROZ  PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded (0.84)



Uncorrelated Assets

Assets with little price relationship to MFA



RING Forecast + Options Trading Strategies   RING  BTC iShares MSCI Global G (-0.0)


FUN Forecast + Options Trading Strategies   FUN  Cedar Fair (-0.01)


POST Forecast + Options Trading Strategies   POST  Post (-0.01)


DFEN Forecast + Options Trading Strategies   DFEN  Direxion Daily Aerospace & Defense Bull 3X Shares (0.02)


RY Forecast + Options Trading Strategies   RY  Royal Bank Of Canada (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against MFA



FRSH Forecast + Options Trading Strategies   FRSH  Freshworks (-0.68)


DAVE Forecast + Options Trading Strategies   DAVE  Dave (-0.68)


HIMS Forecast + Options Trading Strategies   HIMS  Hims & Hers Health (-0.7)


TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.73)


CPRT Forecast + Options Trading Strategies   CPRT  Copart (-0.74)









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