Bullish Case: WBA's restructuring efforts, including closing 1,200 stores, may strengthen operational efficiency and cash flow, leading to potential recovery in stock prices. Recent options volume suggests bullish momentum as well.

Bearish Case: Continued operational struggles, high debt levels, and negative market sentiment could exacerbate WBA's decline, especially after significant recent losses and dividend cuts, hindering any recovery attempts.

Potential Outcomes:

• 35%: Successful turnaround leads to stock price recovery, increasing investor confidence.
• 50%: Operational challenges persist, leading to further declines in stock price.
• 15%: Unexpected positive catalysts arise, driving short-term speculative gains.

Trading Oracle: Considering WBA's volatility metrics, enter a bullish debit spread by buying $10.00 calls and selling $11.00 calls targeting a 2:1 reward/risk ratio. The near-term strengthening market presence enhances odds for upward movement. Monitor closely due to volatility fluctuations and manage risks effectively through staggered exits.

December 11, 2024