FE Forecast + Trading Strategies




Price Forecast:


Bearish<->Bullish




Bullish Case: FE shows bullish prospects due to growing investor sentiment amplified by recent technological advancements and market recovery signals. Increasing activity in call options indicates rising demand, suggesting potential upside for stock prices.




Bearish Case: Conversely, risks from ongoing legal scrutiny and a high PE ratio signal potential downward pressure on FE stock. The recent spike in implied volatility points to market anxiety, reinforcing bears' positions in this environment.




Potential Outcomes:

1. Successful resolution of legal issues leading to a 65% chance of a 10% price rally.

2. Increased regulatory scrutiny may lead to a 25% chance of a 10% price drop.

3. Stable dividends attracting long-term investors with a 10% chance of maintaining current levels.




Trading Oracle: Consider a bullish approach using a long call spread by buying 1 $42 call and selling 1 $43 call expiring in January 2025. This strategy would leverage growing call volumes and embedded call option premiums, targeting a mid-range price forecast of around $44, balancing risk with significant upside potential at low initial capital outlay.



November 12, 2024


Firstenergy Forecast

FE        Firstenergy











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Uncorrelated Assets

Assets with little price relationship to FE



TMF Forecast + Options Trading Strategies   TMF  Direxion Daily 20+ Year Treasury Bull 3X Shares (-0.0)


DECK Forecast + Options Trading Strategies   DECK  Deckers Outdoor (-0.0)


EXTR Forecast + Options Trading Strategies   EXTR  Extreme Networks (0.01)


EWY Forecast + Options Trading Strategies   EWY  iShares MSCI South Korea (0.01)


CHTR Forecast + Options Trading Strategies   CHTR  Charter Communications (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against FE



HTZ Forecast + Options Trading Strategies   HTZ  Hertz Global Holdings (-0.87)


VREX Forecast + Options Trading Strategies   VREX  Varex Imaging (-0.88)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.89)


SNOW Forecast + Options Trading Strategies   SNOW  Snowflake (-0.89)


FRSH Forecast + Options Trading Strategies   FRSH  Freshworks (-0.89)









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