Price Forecast:

Bullish Case: If 23andMe successfully pivots back to consumer genetics and leverages its database for drug discovery, investor confidence could rebound significantly, driving prices higher.

Bearish Case: Ongoing layoffs, the closure of the therapeutics division, and reputational damage from data breaches present significant risks, potentially leading to continued price declines.

Potential Outcomes:

• Increased User Demand (40%): FDA clearances attract more users.
• Legal Consequences (30%): Data breach lawsuits impact finances.
• Continued Financial Losses (20%): Layoffs and restructuring strain resources.
• Successful Licensing Deals (10%): Asset sales mitigate losses.

Trading Oracle: Focus on long volatility. Use credit spreads targeting near-term resistance levels. Buy ME 04/17/2025 4.00 calls at $0.95, and sell ME 04/17/2025 6.00 calls at $0.6. This strategy leverages future volatility spikes expected from company news, while minimizing risk exposure. Aim for a 3:1 risk-to-reward profile if positive catalysts emerge.

December 03, 2024