Bullish Case: Increased adoption of Neuronetics’ therapies and potential upcoming positive regulatory changes could spur a substantial recovery in STIM’s price, leveraging historical patterns of growth seen in longer holding periods.

Bearish Case: Continued negative market sentiment, poor sales performance, and recent flat price action suggest that STIM might face further declines, aligning with historical data indicating limited recovery potential in the short term.

Potential Outcomes:

1. Technological adoption boosts price - 30%.

2. Persistent negative sentiment leads to continued decline - 50%.

3. Institutional investors spark recovery - 20%.

4. Regulatory approval enhances market access - 25%.

5. Neutral sentiment stunts growth - 20%.

Trading Oracle: Given the high implied volatility, consider initiating a bullish debit spread with the December 20, 2024, $2.50 Call and selling the $5.00 Call. This strategy capitalizes on potential positive price movement over the next few months, providing a favorable reward-to-risk ratio.

October 31, 2024