Bullish Case: A strategic shift and new product launches could revitalize MEI, stimulating growth if they capture market demand, supported by elevated implied volatility suggesting upcoming price movements.

Bearish Case: Continued market uncertainty and historical underperformance may persist, driving MEI lower as negative sentiment prevails, particularly if earnings disappoint amidst high competition.

Potential Outcomes:

1. Successful product launch boosts stock (25%);

2. Continued price decline due to market conditions (45%);

3. Positive earnings surprise leads to upward momentum (20%);

4. Strategic acquisition fails, leading to further drops (10%).

Trading Oracle: Employ a long volatility strategy by utilizing debit spreads on $10 calls expiring in April 2025. This capitalizes on high implied volatility and potential positive shifts in MEI's price, maximizing profits in a dynamically bullish outlook with a risk/reward of 2:1.

November 19, 2024