Bullish Case: Chewy's recent partnerships in veterinary services and diverging e-commerce trends exhibit potential for substantial revenue growth, bolstered by an increasing customer base. Strategic expansions position CHWY for a positive market sentiment outcome.

Bearish Case: Intense competition from e-commerce giants like Amazon poses significant threats to Chewy's market share. Economic uncertainties, reflected in flattening price action and mixed consumer sentiment, could impede growth and profits, leading to further declines.

Potential Outcomes:

• 60%: Successful expansion in veterinary services leads to revenue growth.
• 30%: Stiff competition from Amazon hampers growth trajectory.
• 10%: Macro volatility creates uncertainty, impacting stock performance negatively.

Trading Oracle: Engage in a bullish debit spread with CHWY $34-$35 call options expiring in late December 2024. This leverages high implied volatility while targeting a potential price rebound amidst expected upward trends. Maintain flexible position management to adapt to market dynamics.

December 12, 2024