Bullish Case: Freshpet shows strong growth potential in the burgeoning fresh pet food market, supported by expanding manufacturing capacity and robust consumer demand. With ongoing bullish sentiment and implied volatility suggesting steady potential, further upside is feasible.

Bearish Case: Despite growth, Freshpet faces high valuations and increased competition, which may compress margins. Concerns over operational efficacy and supply chain disruptions persist, pointing to potential underperformance in volatile market conditions.

Potential Outcomes:

• Continued revenue expansion: 60%
• Margin compression from competition: 20%
• Unexpected supply chain issues: 10%
• Market saturation limits growth: 10%

Trading Oracle: Pursue a bullish debit spread, buying a 05/16/2025 $160 Call and selling a $170 Call. This strategy captures potential upside from growth momentum and current call dominance. The manageable risk and high reward potential align with a 4-month outlook, leveraging high implied volatility for optimal entry.

January 26, 2025