Price Forecast:

Bullish Case: A favorable regulatory environment and increasing consumer demand could lead to a significant rebound in MJ prices, supported by the higher-than-average call volume indicative of bullish sentiment.

Bearish Case: Continued negative market sentiment and potential regulatory setbacks may further suppress MJ's price, maintaining the current downtrend evident in the historical price data.

Potential Outcomes:

1. Regulatory approval leading to price rise: 40%.

2. Ongoing negative sentiment, causing further declines: 30%.

3. Increased operational efficiencies enhancing profitability: 20%.

4. Unexpected negative earnings affecting confidence: 10%.

Trading Oracle: Engage in a bullish debit spread by buying MJ 01/17/2025 4.00 calls while selling 5.00 calls. This approach captures potential volatility, investing in a favorable outcome while managing risk with limited capital exposure. Aim for maximum profit within a 2-3 month horizon as sentiment shifts.

November 15, 2024