MGA Forecast


Bullish Case: With MGA's undervalued P/B ratio (1.6) and improving fundamentals amidst the EV sector growth, the stock’s potential is strong.


Bearish Case: Persisting low IV, market apathy, and recent underperformance indicate limited upside, with recent scandals further hindering growth.


Potential Outcomes:

1. Mean Reversion (45%): Potential valuation correction.

2. Continued Underperformance (35%): Stagnant volume and sentiment.

3. Outperformance (20%): Market overturn via EV sector boosts. Links to historical price trends and IV data.


Trading Oracle: Execute short-term credit spreads (bearish stance) exploiting low volatility and backwardation. Favor positions around $42.50 and $47.50 strikes, optimizing premium collection with a 1-3 months outlook.


July 16, 2024


Magna International Forecast

MGA      Magna International











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