Price Forecast:

Bullish Case: SONO's recent product launches and anticipated patent victories could significantly enhance sales, driving share prices upwards as consumer sentiment improves, leading to higher expected returns.

Bearish Case: Ongoing legal challenges and market saturation pose risks, potentially leading to reduced margins and negative returns. Declining consumer interest could further pressure stock prices.

Potential Outcomes:

• Strong holiday sales drive growth (60% probability)
• Competitive products erode market share (30% probability)
• Legal victory enhances brand image (40% probability)
• Continued app issues hinder sales growth (50% probability)

Trading Oracle: Engage in a bullish debit spread: buy SONO Jan 2025 $15 calls and sell $20 calls, anticipating positive movements from product excitement. With high implied volatility, this strategy balances risk while targeting strong upside potential over the next few months.

December 14, 2024