Price Forecast:

Bullish Case: Sempra Energy (SRE) could rally as market uncertainty stabilizes, with favorable EPS growth and bullish sentiment driving investor confidence. Analyst upgrades and historical price resilience further support this outlook.

Bearish Case: Conversely, sustained bearish sentiment, elevated volatility, and declining trading volumes may contribute to SRE's price downturn. Risk factors, including market conditions and potential economic headwinds, loom large.

Potential Outcomes:

• Continued upward trend due to positive earnings (40%)
• Market stabilization without major price moves (30%)
• Further bearish pressure leading to a price drop (25%)
• Heightened volatility driving unpredictable swings (5%)

Trading Oracle: Implement a bullish strategy using a debit spread: buy SRE $90 call and sell $95 call, leveraging upward price potential with manageable risk. Expected probability of profit is around 29%, aiming for quick returns in the short-term as volatility stabilizes.

December 13, 2024