Bullish Case: Xcel's strong commitment to renewable energy and improving social sentiment due to reliability could drive stock prices higher, especially with anticipated regulatory support for green initiatives.

Bearish Case: Ongoing legal uncertainties and elevated volatility suggest significant downside risks; regulatory scrutiny and public frustration over rate hikes may weigh heavily on investor confidence.

Potential Outcomes:

• Increased demand for renewable energy drives stock up 30% (35% probability).
• Legal challenges lead to $200M in unexpected costs (50% probability).
• Successful regulatory push eases financial pressure, raising stock 20% (40% probability).
• Investor sentiment remains negative, causing a 15% stock drop (25% probability).
• Public protests result in further regulatory constraints, risking a 10% decline (20% probability).

Trading Oracle: Employ a bearish credit spread by selling $70 calls and buying $75 calls, aiming for a high probability of profit (83%). This strategy maximizes profit while minimizing risk as XEL navigates high volatility periods.

December 19, 2024