Price Forecast:

Bullish Case: The bullish case for RING emerges from rising historical returns and increasing implied volatility at higher strike prices, indicating strong demand. This suggests potential for upward price movement, especially if regulatory clarity enhances investor confidence.

Bearish Case: The bearish case hinges on high market uncertainty and elevated implied volatility at lower strike prices, signaling potential market fears and prompting further declines. Recent flat price action adds to the bearish sentiment, raising concerns of regulatory impacts.

Potential Outcomes:

1. Bullish breakout above $35 (30%) based on increased demand and volatility.

2. Continued consolidation around $30-$34 (40%), supported by mixed market sentiment.

3. Decline below $28 (30%) due to regulatory fears and high implied volatility at lower strikes.

Trading Oracle: Utilize a bullish long volatility debit spread: Buy RING 02/15/2025 31 Call at $2.4 and sell 33 Call at $1.2. This strategy capitalizes on the anticipated volatility spike and has a favorable risk/reward profile, targeting movements above $35 within the next months.

December 15, 2024