Price Forecast:

Bullish Case: WDAY's demonstrated resilience and strong market position, alongside increasing demand for cloud ERP due to AI advancements, may lead to renewed revenue growth and stock appreciation above $290.

Bearish Case: Heightened market volatility and uncertainties from leadership changes could continue to pressure WDAY stock, potentially steering it below $240 amid economic downturns and reduced investor confidence.

Potential Outcomes:

• Strong Q4 results post-acquisition suggest bullish trajectory (60% likelihood).
• Mounting legal pressures and economic challenges hinder growth (25% likelihood).
• Market saturation results in stagnant revenue (15% likelihood).

Trading Oracle: Focus on a bullish strategy by implementing a December 20, 2024, call debit spread with $275/$280 strikes. The current high implied volatility supports potential upside movement, and further advancements in AI could elevate premiums. Maintain trade till late December, targeting a 70% chance of profit.

December 12, 2024