📈 Resilient Trader Trade Idea: The AI Vision Play on Warby Parker (WRBY)

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Resilient Trader is where smart traders come for vetted ideas.

Every week, we cut through the noise and surface opportunities that institutions are already eyeing - but with strategies tailored for retail traders. Today’s setup? A disruptive brand that just got a massive, unpriced catalyst.

We’ll cover:

• Why Warby Parker (WRBY) is a Strong Buy at current levels

• How the AI glasses revolution is a game-changer for the stock

• What the high-leverage options trade is to play the move to $45

🔍 Trade Thesis: WRBY is the Unpriced AI Glasses Play

Warby Parker’s stock has recently pulled back, dropping 8.2% on very light volume following a holiday sales miss and a broader market focus on the success of the Meta/Essilor Luxottica AI glasses 1. We believe this pullback is a gift, as the market is entirely missing the forest for the trees.

The success of the Ray-Ban Meta smart glasses proves the concept: glasses are now a major giftable electronics item. This is a paradigm shift in the multi-billion dollar eyewear market.

Warby Parker is not sitting on the sidelines. The company has secured a major partnership with Google and Samsung to launch its own line of AI-powered glasses in 2026. This collaboration, leveraging Google’s Gemini AI and Android XR platform, positions WRBY as a key player in a market that is expected to ramp from 0.5% adoption currently to 3-5% in 2026.

Even without the AI catalyst, the core Warby business alone supports a $45-$50 price target (more than double the current price of $22.02) based on:

✅ Top-line acceleration (Q3 revenue grew 15.2% YoY) 4.

🥓 Operating cost reductions, especially in store lease costs.

🛠️ Improving incremental Return on Invested Capital (ROIC) on their planned 15% square footage growth.

The company is actively managing down expectations, which is a classic setup for a massive upside surprise.

📊 The Fundamentals Are Turning the Corner

Warby Parker is transitioning from a high-growth, unprofitable disruptor to a profitable, scaling enterprise.

📐 Comparative Valuation: The AI Premium

WRBY trades at a premium to traditional retail peers like National Vision (EYE) but is still a fraction of the size of the global giant EssilorLuxottica (EL.PA). The current valuation does not account for the high-margin, high-growth potential of the AI hardware business.

Our $45-$50 price target is based on the market re-rating WRBY from a specialty retailer to a Vision-Tech company, similar to how the market values high-growth hardware/software firms.

🧭 Technicals: Light Volume Pullback

The recent sell-off to the $22 level occurred on very light volume, suggesting that the move was driven by short-term traders reacting to the holiday news rather than institutional capitulation.

✅ Current Price: $22.02

✅ Key Support: The $20.00 psychological level is critical support.

✅ Key Resistance: The stock needs to clear the recent high of $27.00 and the 52-week high of $31.00 to confirm the breakout.

The chart shows the stock consolidating after a sharp run-up on the Google partnership news, offering a perfect entry point before the next leg up.

💥 Trade of the Week: The AI Call Ladder

We are combining a long equity position with a high-leverage options play to maximize returns on the AI catalyst.

🟢 Trade Setup

• Buy $WRBY ( ▼ 2.13% )  at the current level: $22.02

🛡️ Options Play: Long Call with Covered Call Management

• Buy the June 18th $30 Call for $1.90

  • Initial Cost (Debit): $1.90 per share (x100 for one contract)

  • Breakeven at Expiration: $31.90 ($30 Strike + $1.90 Premium)

  • Distance to Breakeven: 44.87% upside from current price

  • Max Loss: $1.90 (The premium paid)

  • Max Gain: Unlimited above breakeven

Strategy Management: This is a high-leverage bet on the stock hitting $30+ by mid-2026. To reduce the cost basis and increase the probability of profit, we recommend turning this into a Diagonal Spread when the stock reaches $30:

• When WRBY hits $30, sell a shorter-dated, out-of-the-money call (e.g., a March $35 Call) with a 25-30 Delta against your long June $30 Call.

• This generates income, lowers your net cost, and defines a profit range, transforming the trade into a more resilient position.

🛑 Risk Management Tip

Set a stop-loss on the equity position at $19.50 to protect capital if the $20 support fails. For the options trade, the maximum loss is limited to the premium paid, but be prepared to manage the position if the stock stalls near $30.

🚀 Catalysts on the Horizon

Keep your eyes on:

1. Q4 2025 Earnings (Feb/Mar 2026) - Focus on 2026 guidance and any commentary on the AI partnership development.

2. Google/Samsung Partnership Updates - Any news flow or product teasers regarding the 2026 AI glasses launch.

3. Analyst Upgrades - As the AI story gains traction, expect price targets to move towards our $45-$50 range.

4. Technical Breakout - A decisive move above $31.00 on strong volume will signal the next major rally.

🧠 Final Thoughts

WRBY is a classic case of a high-quality growth company with a massive, underappreciated catalyst. The recent noise around the holiday miss is a distraction from the multi-year, multi-billion dollar opportunity in AI-powered eyewear. The partnership with Google and Samsung is a clear signal that Warby Parker is positioned to capture a significant share of this emerging market. This is a rare chance to buy a disruptive growth story at a discount.

✅ Buy WRBY at $22.02
💸 Buy the June 18th $30 Call for $1.90

We'll be watching this one closely.

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