PCG Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: PG&E's undergrounding of power lines and strategic partnerships enhance safety and innovation, potentially lifting investor sentiment and stock performance.




Bearish Case: Regulatory challenges and rising costs may continue to erode investor confidence, exacerbated by negative sentiment from recent stock underperformance.




Potential Outcomes: Optimistic regulatory developments drive 50% chance of stock recovery. 30% chance operational issues persist. 20% risk of severe financial setbacks.




Trading Oracle: Consider bullish credit spreads with near-term expirations due to high volatility and recent price declines. Favor strike prices around $16-$18, targeting March expirations. Current flat term structure suggests a high probability of capturing premium decay.



February 22, 2025


PG&E Forecast

PCG        PG&E











Correlated Assets

Assets that tend to move strongly with PCG



EIX Forecast + Options Trading Strategies   EIX  Edison International (0.91)


PNW Forecast + Options Trading Strategies   PNW  Pinnacle West (0.84)


SO Forecast + Options Trading Strategies   SO  Southern (0.83)


XLP Forecast + Options Trading Strategies   XLP  Consumer Staples Select Sector SPDR (0.82)


FE Forecast + Options Trading Strategies   FE  Firstenergy (0.81)



Uncorrelated Assets

Assets with little price relationship to PCG



FXE Forecast + Options Trading Strategies   FXE  Invesco CurrencyShares Euro (-0.0)


PACB Forecast + Options Trading Strategies   PACB  Pacific Biosciences of California (-0.0)


ITRN Forecast + Options Trading Strategies   ITRN  Ituran Location And Control (0.0)


AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (-0.0)


AL Forecast + Options Trading Strategies   AL  Air Lease Corp (0.0)



Anticorrelated Assets

Assets that tend to move strongly against PCG



TRIP Forecast + Options Trading Strategies   TRIP  TripAdvisor (-0.76)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.76)


PTEN Forecast + Options Trading Strategies   PTEN  Patterson-UTI Energy (-0.77)


USAC Forecast + Options Trading Strategies   USAC  USA Compression (-0.78)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.85)









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