Bullish Case: Recent partnerships with Merck and Moderna drive innovation and market expansion, potentially boosting revenue and stock price. Positive sentiment around personalized medicine and partnerships enhances the bullish outlook.

Bearish Case: High implied volatility reflects market skepticism. Ongoing competition and regulatory challenges may hinder growth. Historical data showing mean-reversion suggests limited upside potential.

Potential Outcomes:

1. Successful collaborations increase PSNL by 35% (55%).

2. Competition limits growth, down 25% (30%).

3. Regulatory issues decrease stock 20% (15%).

Trading Oracle: Deploy a bullish debit spread, buying PSNL 07/18/2025 7.50 C and selling 10.00 C. This strategy capitalizes on the potential upside from strategic partnerships, while managing downside risk. Given high implied volatility, a long volatility position offers positive edge and high probability of profit. Target breakout near short-term highs for optimal gains.

January 23, 2025