Price Forecast:

Bullish Case: Strong historical return data coupled with decreased market uncertainty and high call option volumes suggest EPI could rise significantly. Recent market dynamics favor bullish sentiment.

Bearish Case: High implied volatility for puts and market uncertainty may trigger a downturn, especially if economic conditions worsen or if there are unexpected negative earnings reports.

Potential Outcomes:

1. 30% chance of a bullish rally if market sentiment improves.

2. 40% probability of continued stagnation as seen in historical patterns.

3. 30% likelihood of a bearish decline due to rising volatility and economic concerns.

Trading Oracle: Consider a bullish debit spread with EPI 50.00 calls bought and 52.00 calls sold, exploiting low implied volatility and high call volume. Alternatively, for a bearish view, execute a credit spread selling 47.00 calls and buying 49.00 calls to capitalize on high implied volatility.

November 17, 2024