AEP Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: AEP's commitment to renewable energy investments and institutional backing support potential growth. Historical mean reversion and increased call options volume indicate positive momentum. HeliumHeliumHelium




Bearish Case: Regulatory challenges and overvaluation concerns persist, with high implied volatility suggesting market skepticism. Limited catalysts could suppress growth. HeliumHelium




Potential Outcomes: Expected price range sideways movement (50%) due to mixed signals, slight upward correction (30%) from mean reversion trends, or a decline (20%) from regulatory hurdles.




Trading Oracle: Sell short volatility credit spreads. The current backwardation in implied volatility favors high premium opportunities. Consider a bear call spread with $95 short call, $100 long call expiring in 60 days for a defined risk-reward. Leverage market skepticism. High POP with favorable decay.



January 10, 2025


American Electric Power Forecast

AEP        American Electric Power











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PNW Forecast + Options Trading Strategies   PNW  Pinnacle West (0.93)


KO Forecast + Options Trading Strategies   KO  Coca-Cola (0.9)



Uncorrelated Assets

Assets with little price relationship to AEP



S Forecast + Options Trading Strategies   S  Sprint (-0.0)


ILMN Forecast + Options Trading Strategies   ILMN  Illumina (0.02)


SCHW Forecast + Options Trading Strategies   SCHW  Charles Schwab (0.02)


IAC Forecast + Options Trading Strategies   IAC  IAC InterActiveCorp. (-0.02)


HIVE Forecast + Options Trading Strategies   HIVE  HIVE Blockchain (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against AEP



DIN Forecast + Options Trading Strategies   DIN  Dine Brands (-0.85)


WW Forecast + Options Trading Strategies   WW  WW International (-0.85)


AMR Forecast + Options Trading Strategies   AMR  Alta Mesa Resources (-0.89)


IRTC Forecast + Options Trading Strategies   IRTC  iRhythm (-0.91)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.91)









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