Price Forecast:

Bullish Case: Potential gains from Avista's relationship with Navistar and recent expansions could catalyze growth. A favorable regulatory environment and rising interest in renewable energy may further enhance investor sentiment.

Bearish Case: Ongoing economic uncertainties and regulatory pressures pose risks for AVA. Recent price action indicates limited upside, with high implied volatility capturing bearish sentiment in the market.

Potential Outcomes:

• 40% chance of continued sluggishness due to market expectations.
• 35% likelihood of gains from Avista and Navistar developments.
• 25% risk of declines stemming from economic downturns and regulatory challenges.

Trading Oracle: Consider implementing a bullish debit spread with AVA $40 calls expiring in June 2025. The recent uptick in call volume signals optimism, while current implied volatility allows for capitalizing on potential price movement. Monitor Navistar-related developments closely for actionable insights.

December 06, 2024