Price Forecast:

Bullish Case: EPAM stands to benefit from continued institutionally backed demand in digital services, recent strategic acquisitions enhancing growth prospects, and low volatility levels suggesting strong price support.

Bearish Case: Geopolitical tensions could hinder operations, coupled with stagnating demand and mean-reverting price behavior leading to potential sell-offs, exacerbated by negative market sentiment.

Potential Outcomes:

1) 50%: Successful earnings leads to growth recognition;

2) 30%: Geopolitical risks further harm operations;

3) 15%: High volatility triggers sharp downturns;

4) 5%: Market misprice results in losses.

Trading Oracle: Given the current volatility landscape, consider a bullish debit spread by buying the November 2024 $250 calls and selling the $270 calls. This setup capitalizes on rising volatility, aims for a target return of 30% with a favorable risk/reward ratio. Expect a holding period of approximately one month to capture upside.

November 15, 2024