Price Forecast:

Bullish Case: Celsius may rebound due to strong sales growth and favorable market dynamics. Partnerships, including with PepsiCo, could enhance distribution and customer engagement, driving significant revenue recovery.

Bearish Case: Continued legal challenges and a potential decline in consumer demand could adversely affect CELH's price performance. Regulatory compliance costs and market competition add to uncertainty in future earnings.

Potential Outcomes:

1. Recovery in sales with a 40% chance, boosting shares towards $40.

2. Legal troubles worsen, causing a 35% chance of falling below $25.

3. Stagnation at ~$30, 25% chance as market uncertainties persist.

Trading Oracle: Consider a bullish strategy using a debit spread, buying 1 $31 call and selling 1 $35 call, targeting January 2025 expiration. This positions for upside as CELH shows bullish sentiment, with current volatility levels providing good risk-reward potential at a price target around $40.

October 27, 2024