Bullish Case: VFC's strong brand portfolio amidst stabilizing consumer demand, highlighted by higher options volume for calls at recent volatility peaks, suggests potential recovery as retail trends improve and operational challenges are addressed.

Bearish Case: High implied volatility, particularly in the options market, suggests investor uncertainty. Ongoing operational struggles and economic headwinds could prevent VFC from attracting new investment, maintaining downward price pressure.

Potential Outcomes:

• Significant brand recovery (55%) through e-commerce growth and marketing initiatives.
• Operational challenges continue, leading to declining profits (30%).
• Consumer sentiment shifts negatively, resulting in poor sales (15%).

Trading Oracle: Given the higher implied volatility and bullish sentiment, consider a bullish debit spread: buy VFC 01/17/2025 $22.50 calls and sell $25.00 calls. This strategy leverages anticipated upward moves while controlling downside risk, targeting an expected recovery near year-end.

December 21, 2024