Price Forecast:

Bullish Case: LZB may experience renewed momentum driven by strong consumer sentiment and an expanding product line, evidenced by elevated call option volumes and a positive Helium implied volatility forecast.

Bearish Case: Persistent market volatility, coupled with declining institutional support and high implied volatility for puts, suggests LZB could face significant downward price pressure.

Potential Outcomes:

• Continued earnings growth (60%): Driven by effective capital allocation.
• Persistent sales decline (40%): Recent patterns indicate consumer hesitancy.
• Market volatility positively influencing LZB prices (50%): Recent trends align with historical recoveries.
• Increased institutional interest leads to bullish sentiment (30%): Recent bullish insights support this action.

Trading Oracle: Execute a bullish call debit spread by buying the LZB 01/17/2025 40.00 C and selling the 01/17/2025 45.00 C. High implied volatility and positive edge target a favorable risk/reward, with potential 107% returns. Given current market uncertainties, monitor closely for institutional trends.

November 21, 2024