Bullish Case: BBWI could see a bullish turnaround driven by strong holiday sales, as indicated by increased consumer spending and favorable product reception, alongside a stabilizing market environment.

Bearish Case: In contrast, ongoing concerns about theft, potential store closures, and muted consumer sentiment could hinder BBWI's recovery, leading to decreased stock performance in the near term.

Potential Outcomes:

• 1. Strong holiday sales driving price up (+45% chance).
• 2. Store closures from theft risk weighing down stock (-30% chance).
• 3. Mixed earnings results leading to flat performance (+25% chance).

Trading Oracle: Initiate a bullish debit spread by buying a $38.00 strike call and selling a $40.00 strike call, expiring in ~14 days. This trade exploits expected price appreciation due to anticipated strong holiday sales, leveraging favorable implied volatility dynamics with an excellent risk-reward ratio.

December 15, 2024