EVRG Forecast + Trading Strategies


Bullish Case: Evergy’s strategic investments in infrastructure and renewable energy, combined with positive analyst sentiment and high implied volatility from options trading, suggest potential for upside. The upcoming rate changes may further enhance financial stability.


Bearish Case: Short-term operational challenges and previous missed earnings projections indicate possible revenue instability. Increasing customer dissatisfaction due to rate hikes may lead to attrition, further pressuring stock price.


Potential Outcomes:

1. 40%: Rate increases enhance revenue but risk customer backlash.

2. 35%: Rate increases rejected, affecting future investments.

3. 25%: Successful implementation of innovative pricing boosts reputation.


Trading Oracle: Consider a bullish debit spread, buying $55 calls and selling $57.50 calls, targeting September expiry. Capitalize on the current volatility; with positive edge and a high probability of profit, this strategy aligns well with mean reversion tendencies.


July 25, 2024


Evergy Forecast

EVRG      Evergy











Correlated Assets

Assets that tend to move strongly with EVRG



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.37)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.36)


VFC Forecast + Options Trading Strategies   VFC  VF (0.08)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.04)



Uncorrelated Assets

Assets with little price relationship to EVRG



LI Forecast + Options Trading Strategies   LI  Li Auto (-0.04)


VFC Forecast + Options Trading Strategies   VFC  VF (0.08)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.36)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.37)



Anticorrelated Assets

Assets that tend to move strongly against EVRG



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.37)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.36)


VFC Forecast + Options Trading Strategies   VFC  VF (0.08)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.04)





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