CHWY Pre-Earnings Surge: High-Conviction Call SetupChewy, Inc.BATS:CHWYquantsignalsCHWY Earnings Signal | 2025-12-10 Signal Quality: Medium (65% confidence) Risk Level: Moderate–High Model Alignment: ⚠️ Conflict LLM: Buy Calls Katy: Bearish (predicts drop to $32.88–$33.98) Flow: Neutral Market Conditions: Strong pre-earnings rally: +4.87% (24h) Price broke above key resistance at $34.00 Low volume (0.4× average) → cautious institutional participation Bullish momentum indicators (MACD positive) IV elevated (60%–130%), consistent with earnings volatility Why This Trade Still Leans Bullish: Chewy raised FY2025 sales guidance → strong fundamental catalyst Positive Q3 commentary + bullish media sentiment Technical breakout + short-term momentum favor upside Options flow neutral (no large bearish pressure) Risks to Watch: Katy AI forecasts -2% to -5% downside despite bullish catalysts Earnings beta is high → larger swings Very short expiry (2 days) increases decay risk Break below $33.50 invalidates the setup and favors Katy’s bearish scenario Best Use Case: Small, speculative call position based on fundamental strength + technical breakout, while respecting the model conflict. Position Guidance: Size: 2% of portfolio (reduced due to Katy conflict) Entry: $1.02 Target: $1.53 Stop: $0.61 Strike: $34 Calls (0.667 Delta) Expiry: 12/12/2025 Bottom Line: Fundamentals and technicals lean bullish, but Katy’s bearish prediction introduces uncertainty. Tight stops + reduced size recommended.