Price Forecast:

Bullish Case: ONON is positioned for an upswing with a 91% increase in call option volume relative to puts, coupled with low implied volatility suggesting undervaluation in the face of expected AI growth, which could drive product demand.

Bearish Case: Despite strong signal in call volume, recent flat price action amidst global economic threats and high implied volatility may suppress immediate upward movement and heightens risk of continued downside.

Potential Outcomes:

1. Recovery due to AI adoption (40%);

2. Continued downtrend driven by negative market sentiment (35%);

3. Market indifference leading to sideways trading (25%).

Trading Oracle: Consider trading bullish debit spreads by buying $50 calls and selling $52.50 calls, capturing upside from potential AI-driven demand. Monitor implied volatility for increased price action confirmation—this setup capitalizes on bullish sentiment with positive expected returns.

November 14, 2024