PPL Forecast + Trading Strategies


Bullish Case: PPL shows mean-reverting price action with moderate implied volatility, potentially stabilizing or increasing moderately. The company's investments in renewable energy and infrastructure improvements offer growth prospects.


Bearish Case: PPL exhibits long-term negative returns history and faces competitive pressure from renewable energy providers. Market uncertainties and elevated implied volatility warn of potential downside in the short term.


Potential Outcomes: There's a 60% chance of modest gains due to mean reversion, and a 40% risk of declines due to market uncertainties. Implied volatility structures suggest more significant uncertainty around $28–$29 prices.


Trading Oracle: Execute a bullish call debit spread. Buy $30 call and sell $32 call for Jan 2025 expiry. This balances defined risk with potential upside, leveraging moderate implied volatilities and mean reversion. High reward-risk ratio, moderate capital outlay, targeting 179 days horizon.


July 23, 2024










Correlated Assets

Assets that tend to move strongly with PPL



ETR Forecast + Options Trading Strategies   ETR  Entergy (0.96)


AEP Forecast + Options Trading Strategies   AEP  American Electric Power (0.95)


DTE Forecast + Options Trading Strategies   DTE  DTE Energy (0.94)


DVY Forecast + Options Trading Strategies   DVY  BlackRock Institutional Trust Company N.A. - iShares Select Dividend (0.93)


ITA Forecast + Options Trading Strategies   ITA  BTC iShares U.S. Aerospac (0.92)



Uncorrelated Assets

Assets with little price relationship to PPL



DE Forecast + Options Trading Strategies   DE  Deere (0.0)


KLIC Forecast + Options Trading Strategies   KLIC  Kulicke & Soffa Industries (0.0)


CTRA Forecast + Options Trading Strategies   CTRA  Coterra Energy (-0.0)


LH Forecast + Options Trading Strategies   LH  Laboratory Corp. Of America (-0.0)


GTLS Forecast + Options Trading Strategies   GTLS  Chart Industries (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against PPL



RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.82)


SQQQ Forecast + Options Trading Strategies   SQQQ  ProShares UltraPro Short QQQ (-0.83)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.84)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.86)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.86)





Become a more profitable investor with AI optimized trading strategies






×

Chat with PPL


 Ask any question about PPL!