Price Forecast:

Bullish Case: Positive streaming growth and potential merger with Skydance could drive PARA's recovery, boosted by high investor sentiment reflected in elevated call option volumes.

Bearish Case: Continued high production costs and recent negative earnings forecasts may exert downward pressure on PARA, exacerbated by the risk of union strikes and market uncertainty.

Potential Outcomes:

• 40%: Paramount sees a recovery post-merger, spiking stock to $15.
• 45%: Production disruptions and losses lead to further declines, potentially dropping to $8.
• 15%: Stock remains range-bound around $10.

Trading Oracle: Consider executing a bullish debit spread by buying PARA 01/17/2025 12.00 C and selling 13.00 C, leveraging elevated implied volatility for potential short-term gains. Focus on near-term events to capitalize on price movement while employing protective stops to mitigate risk, given the current low price level and improved options volume.

December 07, 2024