Bullish Case: TREE may benefit from strategic acquisitions and diversified offerings, leveraging its current price stability and potential for future growth. The recent positive AI forecast and higher call volume also indicate optimism.

Bearish Case: TREE faces challenges from high operational costs and competitive pressures, highlighted by mixed social media sentiment and elevated implied volatility relative to SPY. Profitability remains under pressure.

Potential Outcomes:

• 55%: Moderate growth from strategic initiatives.
• 25%: Cost pressures leading to stagnation.
• 15%: Increased competition triggering a decline.
• 5%: Major setbacks due to regulatory changes.

Trading Oracle: Given TREE's high volatility and AI's positive forecast, a bullish debit spread with a July 2025 expiry is attractive: buy $45 calls and sell $50 calls. This leverages high implied volatility and captures potential upward movement. Ideal for traders seeking high reward:risk ratios amid uncertain market conditions.

January 21, 2025