Bullish Case: VRNT's technological advancements in AI and analytics, coupled with strategic moves in customer engagement solutions, suggest growth potential as market conditions stabilize. Options volume indicates bullish sentiment.

Bearish Case: Continuous insider selling, macroeconomic headwinds, and competitive pressures could persist, potentially impacting VRNT's long-term growth and shareholder returns despite technological innovations.

Potential Outcomes:

• Reversal with earnings growth: 40% - Technological advancements lead to earnings improvement.
• Continued decline due to macro factors: 30% - Economic headwinds pressure sales.
• M&A interest: 15% - Potential buyout interest due to undervaluation.

Trading Oracle:

Strategy: Bearish Long Volatility. Given high implied volatility and macroeconomic uncertainty, buying OOTM put options offers lucrative risk-reward. VRNT's current oversold condition and insider selling suggest downside potential, aligning with market sentiment.

March 26, 2025