SO Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: SO is investing in renewable energy, maintaining strong cash flows, and has a positive historical return outlook, suggesting growth potential.




Bearish Case: Rising interest rates and competition from alternative energy sources could pressure margins, causing potential downtrends in SO.




Potential Outcomes:
  • Continued investment in renewables boosts SO: 35%
  • Rising rates pressure profits: 40%
  • Stable energy demand moderates price: 25%




Trading Oracle: Deploy a bullish debit spread: buy the SO $84 call, sell the $86 call, expiring in ~30 days. This captures upside potential with high implied volatility; 80% profit probability. Leverage mean reversion and strong utility fundamentals.



January 24, 2025


Southern Forecast

SO        Southern











Correlated Assets

Assets that tend to move strongly with SO



AFL Forecast + Options Trading Strategies   AFL  Aflac (0.96)


FE Forecast + Options Trading Strategies   FE  Firstenergy (0.95)


ZETA Forecast + Options Trading Strategies   ZETA  Zeta Global Holdings Corp (0.94)


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


WPM Forecast + Options Trading Strategies   WPM  Wheaton Precious Metals (0.91)



Uncorrelated Assets

Assets with little price relationship to SO



FCX Forecast + Options Trading Strategies   FCX  Freeport-McMoRan (0.0)


LCID Forecast + Options Trading Strategies   LCID  Lucid (0.01)


SCHW Forecast + Options Trading Strategies   SCHW  Charles Schwab (0.01)


HCC Forecast + Options Trading Strategies   HCC  Warrior Met Coal (0.01)


BHVN Forecast + Options Trading Strategies   BHVN  Biohaven Pharmaceutical (-0.02)



Anticorrelated Assets

Assets that tend to move strongly against SO



NGL Forecast + Options Trading Strategies   NGL  NGL Energy Partners (-0.86)


AAP Forecast + Options Trading Strategies   AAP  Advance Auto Parts (-0.86)


APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (-0.87)


CRSR Forecast + Options Trading Strategies   CRSR  Corsair Gaming (-0.89)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.91)









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