Price Forecast:

Bullish Case: RHP has demonstrated robust revenue growth in hospitality, bolstered by strong occupancy rates and increasing demand. Favorable analyst sentiment supports potential price appreciation, suggesting a positive outlook ahead.

Bearish Case: Potential economic headwinds, including rising inflation and increased competition, could constrain profit margins and dampen discretionary spending. This creates significant downside risks for RHP's price performance.

Potential Outcomes:

• Continued demand surge: 35% probability
• Recessionary pressures impact: 30% probability
• Operational improvements boost margin: 20% probability
• Shareholder discontent due to insider selling: 15% probability

Trading Oracle: Adopt a bullish stance with a call debit spread using RHP 01/17/2025 $120C and $125C options. This strategy leverages relatively high implied volatility while controlling risk, targeting a price increase leading to strong potential returns. Monitor economic indicators closely to adjust positions as needed.

November 27, 2024