Bullish Case: Improvements in macroeconomic conditions and strong upcoming earnings could drive retail demand, resulting in a reversal of the current downtrend. Historical patterns suggest potential for recovery, particularly over the long term.

Bearish Case: Continued macroeconomic pressures and poor retail performance could propel further declines in LESL's stock price. High volatility and negative historical returns enhance the likelihood of sustained bearish trends.

Potential Outcomes:

• Macro recovery boosts demand (30%)
• Continued retail sector challenges persist (40%)
• Temporary earnings surprise sparks rebound (20%)
• Further financial declines due to economic strain (10%)

Trading Oracle: Consider a bullish strategy via debit spreads focused on LESL $3 calls for April expiration, leveraging high implied volatility to capitalize on potential rebounds. With market indicators suggesting upside, this approach maximizes profit potential while minimizing risk exposure.

December 10, 2024