Bullish Case: ALHC could benefit from favorable healthcare reforms enhancing profitability. Recent strong call volume indicates optimism among traders, suggesting upward price momentum may materialize as implied volatility remains elevated around earnings reports.

Bearish Case: Economic pressures may constrain ALHC’s growth, with rising costs overshadowing potential gains. Regulatory changes could deter market confidence, leading to a potential decline as evident from the high put volume signaling bearish sentiment.

Potential Outcomes:

• Healthcare reforms enhancing revenue growth: 40%
• Stock price declines due to economic pressure: 30%
• Market confidence shifts positively post-earnings: 20%
• Negative investor reactions to government regulations: 10%

Trading Oracle: Initiate a bullish directional trade using a debit spread, specifically the ALHC 01/17/2025 12.50C and 15.00C to leverage the elevated implied volatility. Target near-term price appreciation with minimal risk exposure as volatility is expected to decrease post-earnings announcement.

December 21, 2024