Bullish Case: CHCT may benefit from upcoming community healthcare mandates and improving market sentiment. A potential recovery in stock prices, driven by supportive legislative changes, suggests a positive outlook for investors.

Bearish Case: Continued institutional sell-offs and regulatory challenges could pressure CHCT's stock further. High implied volatility indicates significant market uncertainty, making a bearish outlook plausible due to financial instability concerns.

Potential Outcomes:

• Positive market reception to new mandates (30% probability).
• Continued sell-off due to institutional pressures (25% probability).
• Market volatility decreases, leading to stable price recovery (20% probability).
• Regulatory impacts restrict growth potential (25% probability).

Trading Oracle: Consider a bullish debit spread, buying the 01/17/2025 $20 calls while selling the $25 calls. This exploits high implied volatility and positions for price recovery, targeting a favorable risk-reward ratio. Given expected legislative support and positive market conditions, the outlook remains cautiously optimistic.

December 14, 2024