NXRT Forecast


Bullish Case: NXRT is trading at a significant discount to historical levels, and a recent uptick in rental demand amidst tightening housing market conditions could drive price recovery.


Bearish Case: NXRT's implied volatility is notably higher than historical norms, suggesting a high level of market uncertainty and potential downside risk in a rapidly changing economic environment.


Potential Outcomes:

1. Continued housing market downturn (50%).

2. Stabilization and slight growth in rental income (30%).

3. Significant market recovery with interest rate cuts (20%).


Trading Oracle: Adopt a bullish outlook with cautious optimism. Execute a long call spread: Buy NXRT 07/19/2024 40.00 C, sell NXRT 07/19/2024 45.00 C. This structure takes advantage of moderate uptrend with capped risk, leveraging implied volatility edge for high reward-to-risk ratio.


July 03, 2024


NexPoint Residential Forecast

NXRT      NexPoint Residential











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