Price Forecast:

Bullish Case: The bullish outlook on PEG is supported by decreasing implied volatility trends indicating reduced uncertainty around earnings. Anticipated continued demand for infrastructure investment underpins steady growth, suggesting possible price appreciation.

Bearish Case: Conversely, potential regulatory pressures and recent volatility spikes indicate risks that could lead to negative price movements, particularly if there are market shifts due to economic policies or increased competition.

Potential Outcomes:

1) EPS growth projections are met (60%);

2) Regulatory challenges negatively impact shares (25%);

3) Market stability leads to no substantial price change (15%).

Trading Oracle: Implement a bullish credit spread strategy by selling $85 puts and buying $80 puts expiring in ~42 days. This strategy reflects the low implied volatility environment, capitalizing on premium decay while retaining a high probability of profit (chance around 76%).

November 12, 2024