Bullish Case: IGT is positioned to leverage its innovative gaming solutions and market expansions, potentially driving revenue growth. Strategic partnerships and recent product launches could strengthen its financial performance.

Bearish Case: IGT faces high competition and regulatory challenges that may dampen its growth trajectory. Recent price declines and high implied volatilities indicate skepticism around its ability to sustain earnings and adapt to digital transitions.

Potential Outcomes:

• 30%: Successful expansion leads to revenue growth.
• 50%: Earnings disappoint, driving negative sentiment.
• 20%: Trade around current levels due to mean reversion.

Trading Oracle: Trade a bearish short volatility strategy using put credit spreads. Sell IGT $15 puts and buy $14 puts expiring in ~30 days. This strategy capitalizes on high put volume and market expectation of stability, offering a high probability of profit and good reward:risk ratio.

February 04, 2025