Bullish Case: WVE's strong clinical trial results and potential for regulatory approval could drive significant price increases. Current high implied volatility indicates trader optimism, suggesting substantial upside potential, especially with upcoming catalysts.

Bearish Case: With Takeda's withdrawal from collaboration and past regulatory issues, concerns about WVE's pipeline could lead to significant sell-offs. Persistent flat price action and high implied volatility reflect market uncertainty, indicating risk of price declines.

Potential Outcomes:

• Successful regulatory approval (30%) - Positive trial data boosts confidence.
• Market disappointment from future trial results (25%) - Investor confidence shaken.
• Continued flat performance (20%) - Lack of catalysts keeps interest low.
• Positive results from upcoming clinical trials (15%) - Renewed optimism.
• Increased market skepticism leading to price drops (10%) - Sell-offs based on fear of failure.

Trading Oracle: A bullish approach is recommended: Execute a debit call spread by buying WVE 12/20/2024 15.00 C and selling WVE 12/20/2024 17.50 C. This leverages high implied volatility while minimizing risk, targeting profit from anticipated regulatory news in the short term.

December 19, 2024