Price Forecast:

Bullish Case: Genpact's focus on AI and automation is driving revenue growth. The implied volatility surface suggests higher potential returns, indicating investor conviction in an upward movement.

Bearish Case: Current high implied volatility reflects market uncertainty; if revenues miss expectations, investor sentiment may wane, causing downward pressure on G shares as historically indicated.

Potential Outcomes:

• 40%: Renewed AI investments leading to revenue growth.
• 30%: Persistent bearish trend following economic pressures.
• 20%: Neutral performance aligning with historical averages.
• 10%: Unforeseen market developments driving volatility.

Trading Oracle: Consider initiating a bullish debit spread by buying G $45.00 call options and selling $50.00 calls. This strategy benefits from anticipated volatility and upcoming earnings. Aim for a 137% potential return on a projected move, aligning with historical trends indicating probable upward price action within the next quarter.

November 23, 2024