Price Forecast:

Bullish Case: COMP may benefit from higher research funding and strategic partnerships in the AI and psychedelic sectors, potentially leading to increased market confidence and stock price appreciation.

Bearish Case: Ongoing market volatility and competition in both the proptech and psychedelic sectors could dampen investor sentiment, leading to a potential decline in COMP’s stock value.

Potential Outcomes:

1. 60%: Successful FDA approvals lead to a price increase as COMP360 captures the market.

2. 25%: Market saturation impacts sales, resulting in stagnation.

3. 15%: Regulatory delays and intensified competition cause a significant downturn.

Trading Oracle: Adopt a bullish strategy using long call debit spreads on COMP. Initiate by buying $7.0 calls and selling $8.0 calls, targeting a November expiration to leverage expected volatility spikes and positive sentiment. This strategy optimizes risk while positioning for upside from potential regulatory breakthroughs.

November 14, 2024