Price Forecast:

Bullish Case: Institutional interest and consistent gold price increases support bullish sentiment for AEM, with a potential rebound observable in the charts. Implied volatility suggests expectations of an upward trend.

Bearish Case: Market skepticism remains due to AEM’s historical underperformance and low trading volumes. High implied volatility reflects uncertainty, suggesting potential further downside risk.

Potential Outcomes:

• Increase in Gold Prices (40%): A prolonged bullish run in gold boosts AEM's stock.
• Institutional Buying Spree (35%): Heightened interest in mining stocks leads to price rallies.
• Bearish Sentiment Dominates (25%): Market continues to weigh down AEM due to historical performance.

Trading Oracle: Engage in a bullish debit spread by buying AEM $80 calls and selling $85 calls, targeting the next earnings report. With volatility steady, this strategy maximizes gains from potential upward movements while limiting risk. High potential reward-to-risk ratio prevailing.

December 21, 2024