Price Forecast:

Bullish Case: Recent government support for clean energy and rising uranium demand may significantly elevate UUUU's stock price. The recent partnership in CNG fuels could enhance revenue streams, attracting investor interest.

Bearish Case: Continued financial underperformance and regulatory hurdles could lead to further declines in UUUU's stock price. High levels of implied volatility indicate significant market uncertainty, which may deter investors.

Potential Outcomes:

1. Increased uranium demand leading to 40% price rise (30% chance).
2. Regulatory hurdles impacting operations, resulting in 25% drop (25% chance).
3. Successful partnerships boosting revenue, leading to 20% upside (20% chance).
4. Persistent financial struggles causing a 15% decline (15% chance).
5. Market stabilization resulting in 10% sideways movement (10% chance).

Trading Oracle: Implement a bullish calendar spread by buying Jan 2025 $7.00 calls and selling $9.00 calls. This aligns with the upward potential from increasing uranium demand, while capitalizing on current high volatility levels. The structured risk provides a favorable reward-to-risk ratio.

December 15, 2024