Bullish Case: Celsius shows potential for recovery on the back of solid operational strategies and favorable market trends, with anticipated revenue boosts from global expansions and brand partnerships like PepsiCo.

Bearish Case: Legal risks surrounding Celsius Holdings and its founder threaten investor confidence and could push the stock price lower, especially amid mixed quarterly performance and market volatility.

Potential Outcomes:

• Resolution of legal issues leading to a 30% price recovery (30% chance)
• Continued governance issues impacting stock valuation, leading to a potential 20% drop (40% chance)
• Strong earnings and partnerships boosting growth, potentially raising price by 50% (30% chance)

Trading Oracle: Consider a short-term bullish outlook targeting debit spreads on CELH; buy the December $30 call and sell the $32.50 call. This exploits elevated implied volatility (around 80%) while hedging against potential downturns due to legal uncertainties. The strategy presents a favorable risk-reward scenario given recent trends in trading volume favoring calls over puts.

December 04, 2024