Price Forecast:

Bullish Case: Positive legal outcomes from Masimo's disputes with Apple could unlock substantial royalty revenues, driving stock prices higher amid growing demand for health tech solutions and innovations.

Bearish Case: Ongoing legal challenges and activist pressures may destabilize Masimo, leading to further volatility and stock price declines, while weakening investor sentiment amidst heightened uncertainty.

Potential Outcomes:

• Legal win vs Apple (55%) boosts stock.
• Settlement reduces uncertainty (25%).
• Losing appeal increases volatility (40%).
• Market share gains in health tech (60%).

Trading Oracle: Implement a bullish debit spread strategy by buying $175 calls and selling $180 calls, given implied volatility and upcoming legal developments. Current sentiment favors long positions, anticipating a price recovery with a favorable legal resolution. Adjust positions based on volatility spikes.

December 04, 2024