SPXS Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: SPXS's high implied volatility and recent call volume suggest potential positive shifts, especially if unexpected market downturns increase fear and demand for bearish protection.




Bearish Case: The long-term downtrend of SPXS and low trading volumes signify persistent bearish sentiment. Historical returns favor further decline absent significant market stressors.




Potential Outcomes:
  • 60% chance of SPXS declining around $5 due to market stability.
  • 30% likelihood of trade flat near $6.10.
  • 10% potential spike to $7 if volatility increases.




Trading Oracle: Utilize Bearish Short Volatility by selling $6.5 call and buying $7.5 call. This exploits current bearish sentiment and flat implied volatility curve, capturing premium from high put volume.



February 27, 2025


Direxion Daily S&P 500 Bear 3X Shares Forecast

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