Price Forecast:

Bullish Case: Increased cultural interest in poetry, driven by media buzz around Taylor Swift's work, may potentiate a surge in demand for POET products, propelling prices upward. Positive sentiment and high trading volume further support this case.

Bearish Case: Stiff competition and waning interest in poetry could lead to stagnation or declining demand for POET products. High implied volatility indicates market uncertainty, increasing downside risks.

Potential Outcomes:

• Regaining traction in cultural trends boosts POET price: 40%
• Increasing competition stunts growth: 30%
• Macroeconomic downturn impacts tech stock prices negatively: 20%
• Stable interest maintains current price range: 10%

Trading Oracle: Adopt a long volatility strategy with debit spreads. Buy January 2025 $6.00 calls while selling $8.00 calls. With current implied volatility peaking at 112.41%, this approach offers exposure to bullish price action while capping risk. Adjust closers to upcoming cultural events for maximum alpha.

December 11, 2024