FE Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: FE's infrastructure upgrades and strong call option volume support potential growth, even with mean-reverting price action.




Bearish Case: Legal disputes and price decline trends suggest hurdles, alongside backwardation highlighting short-term market skepticism.




Potential Outcomes: Positive project outcomes (60%), ongoing legal issues impacting sentiment (30%), or unchanged price action (10%).




Trading Oracle: Capitalizing on backwardation, a bullish long call debit spread targeting March 2025 makes sense, due to strong call volumes and low implied volatility. This positions well for anticipated upside from infrastructure projects, balanced against legal risks, with high reward-to-risk.



January 05, 2025


Firstenergy Forecast

FE        Firstenergy











Correlated Assets

Assets that tend to move strongly with FE



EIX Forecast + Options Trading Strategies   EIX  Edison International (0.96)


PNW Forecast + Options Trading Strategies   PNW  Pinnacle West (0.92)


XLP Forecast + Options Trading Strategies   XLP  Consumer Staples Select Sector SPDR (0.92)


ZETA Forecast + Options Trading Strategies   ZETA  Zeta Global Holdings Corp (0.91)


LTH Forecast + Options Trading Strategies   LTH  Life Time (0.9)



Uncorrelated Assets

Assets with little price relationship to FE



NOVA Forecast + Options Trading Strategies   NOVA  Sunnova Energy International (0.0)


IAC Forecast + Options Trading Strategies   IAC  IAC InterActiveCorp. (0.0)


ST Forecast + Options Trading Strategies   ST  Sensata (-0.01)


CRON Forecast + Options Trading Strategies   CRON  Cronos (-0.01)


IOVA Forecast + Options Trading Strategies   IOVA  Iovance Biotherapeutics (0.02)



Anticorrelated Assets

Assets that tend to move strongly against FE



DIN Forecast + Options Trading Strategies   DIN  Dine Brands (-0.84)


ABCL Forecast + Options Trading Strategies   ABCL  AbCellera Biologics (-0.87)


CRSR Forecast + Options Trading Strategies   CRSR  Corsair Gaming (-0.88)


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


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









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