Bullish Case: YETI's brand loyalty and historical sales growth, combined with a positive market outlook and upcoming promotional events, point to potential price appreciation. Recent volume favors calls, indicating bullish sentiment.

Bearish Case: Despite brand strength, YETI faces competitive pressures and a flat price trajectory. High implied volatility in put options suggests market caution and risk of further downturns, limiting upside potential.

Potential Outcomes:

1. Brand loyalty leads to 35% upside;

2. Continued competition results in 45% downside;

3. Market stability at 20%. Probabilities reflect current market dynamics and historical trends.

Trading Oracle: Emphasize a bullish credit spread strategy by selling the YETI 05/16/2025 40.00C and buying 42.50C, leveraging positive edge with 75% odds. High implied volatility and market trends indicate favorable risk:reward dynamics. Balance exposure with short vol positions if necessary, targeting a 21% potential return.

November 20, 2024