Price Forecast:

Bullish Case: LUMN may benefit from strategic partnerships and upcoming product launches, boosting investor confidence. Implied volatility suggests potential upward swings, supported by increased call volumes pointing to bullish sentiment.

Bearish Case: Continued operational challenges and high debt levels pose significant risks. The recent spike in implied volatility indicates market skepticism, suggesting further downside risk and possible negative sentiment during earnings announcements.

Potential Outcomes:

• 40%: Continued financial struggles leading to stock declines.
• 30%: Successful partnerships driving steady growth.
• 20%: Temporary stabilization with minor price fluctuations around $7.365.
• 10%: Breakthrough in technological innovations significantly boosting stock.

Trading Oracle: Consider a bearish credit spread strategy: sell 2 $7.50 calls and buy 3 $8.50 calls, targeting a market odds of profit at 64% with a potential return of 19% (120% annualized). This leverages current volatility and market sentiment while mitigating risk in uncertain conditions.

November 29, 2024