CWEN Forecast + Trading Strategies


Bullish Case: Clearway Energy's strategic capital recycling, robust demand for renewable energy, and high-yielding dividend provide growth potential that can lead to surging stock prices.


Bearish Case: Market skepticism, higher interest rates raising capital costs, and potential underperformance amid regulatory uncertainties could lead to further stock price declines.


Potential Outcomes:

1. 30% chance of stock rebound due to capital recycling and demand.

2. 40% chance of continued decline from market distrust.

3. 30% chance of sideways trading with mixed signals.


Trading Oracle: Implement a bullish calendar spread for February 2025 expiration to capitalize on falling implied volatility post-October 2024. Buy February 2025 calls at $25.0 strike and sell September 2024 calls at $30.0 strike. This approach leverages mean-reverting behavior and expects lower volatility after October, providing a high reward-to-risk and positive edge.


July 23, 2024


Clearway Energy Forecast

CWEN      Clearway Energy











Correlated Assets

Assets that tend to move strongly with CWEN



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.41)


VFC Forecast + Options Trading Strategies   VFC  VF (0.07)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.04)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.29)



Uncorrelated Assets

Assets with little price relationship to CWEN



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.04)


VFC Forecast + Options Trading Strategies   VFC  VF (0.07)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.29)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.41)



Anticorrelated Assets

Assets that tend to move strongly against CWEN



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.41)


VFC Forecast + Options Trading Strategies   VFC  VF (0.07)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.04)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.29)





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