Edison (EIX) Offering Possible 12.36% Return Over the Next 16 Calendar Days

Edison's most recent trend suggests a bearish bias. One trading opportunity on Edison is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 12.36% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock rose above the $62.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Edison is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Edison is bearish.

The RSI indicator is at 30.4 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Edison

Edison International and Southern California Edison Declare Q2 Dividends
Thu, 25 Jun 2020 00:40:00 +0000
The Board of Directors of Edison International today declared quarterly common stock and preferred stock dividends.

Edited Transcript of EIX.N earnings conference call or presentation 30-Apr-20 8:30pm GMT
Wed, 24 Jun 2020 01:23:14 +0000
Q1 2020 Edison International Earnings Call

PG&E Rescue Fund Bond Sale Delayed by Drop in Power Demand
Mon, 22 Jun 2020 17:33:16 +0000
(Bloomberg) — The coronavirus-related economic shutdowns have led to one arcane consequence: delaying California’s sale of $10.5 billion in bonds to finance future wildfire costs.Power customers are using less electricity with shops and businesses closed, and that has slowed the efforts to pay down bonds sold in the last energy crisis that must be defeased before the new debt is offered.The delay means the state can’t take advantage of the current rally in the $3.9 trillion municipal market. While investors in need of tax-havens generally seek California bonds, the market now is seeing even greater demand for such securities. Bondholders are set to receive a wall of debt payments this summer that’s expected to exceed the amount of new securities on tap.“It’s hard to anticipate what the fall is going to look like,” said James Dearborn, director of municipal credit research at DWS. “If they were issuing bonds today, I think they would be well received.”Last year, California Governor Gavin Newsom and state legislators agreed to establish a $21 billion fund to help utility giants including PG&E Corp. and Edison International cover future liabilities when their equipment ignites catastrophic blazes. Such exposure led to PG&E Corp.’s bankruptcy last year, and its incipient exit will allow it to tap the fund.The fund was part of legislation needed to keep investor-owned power companies operating as wildfires increase in number and severity. An unusual California doctrine holds utilities liable for wildfires that their equipment sparks, even if they aren’t proven negligent, leaving officials worried about the reliability of power in the most-populous U.S. state.Helping finance the fund is $10.5 billion to be raised through the sale of municipal revenue bonds. The bonds will be backed by a charge customers are already seeing on their bills from the $11.2 billion in bonds the state sold starting in 2002. That issuance reimbursed California from buying electricity for insolvent utilities hobbled by rising prices and manipulation by Enron Corp. and other companies in the deregulated market.The catch: California officials have to wait until they can defease those bonds, of which $1.5 billion is outstanding. The amount collected by the $.005 per kilowatt hour charge depends on usage. With the state mandating residents to shelter in place at the end of March, electricity demand dropped. Since the first full week of the statewide stay-at-home order through June 7, homes, businesses and manufacturers used 3.7% less in electricity on an average weekday, according to California ISO, which manages the state’s power grid.Originally, the bonds were to be retired around the third week of August. Due to lower than projected revenue, the estimate is now mid- to late-September, with the new bonds potentially being sold in October, according to the state treasurer’s office. It’s likely the new bonds would pay back the $2 billion in loans to the fund from the state’s general fund, said H.D. Palmer, a spokesman for Newsom’s finance department.Contributions from the utilities make up the rest of the fund. PG&E’s share is $4.8 billion. Southern California Edison made its initial contribution to the fund of $2.4 billion in September 2019 and made the first of its 10 annual payments of $95 million in December. SDG&E made its first initial contribution of $322.5 million and its first of its ten annual payments of $12.9 million.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

I-5 Electric Truck Charging Sites Mapped Out by Electric Utilities
Wed, 17 Jun 2020 18:00:00 +0000
Electric utilities in three West Coast states have announced the results of a study that could lead to significant reductions of pollution from freight transportation up and down the Pacific Coast and create jobs in an economy hit hard by the novel coronavirus.

Taking a Page from Tesla's Notebook, Sunrun Builds a "Virtual" Solar Power Plant in California
Tue, 16 Jun 2020 15:56:56 +0000
Two years ago, Elon Musk's Tesla (NASDAQ: TSLA) made a big splash on the world stage with his plan to link 50,000 solar-panel-equipped homes in South Australia to create a 250-megawatt “virtual power plant” that could both convert solar power into electricity, and also store it for use when it was needed. Two years later, Sunrun (NASDAQ: RUN) — a rival to Tesla in the field of solar energy, if not in electric cars — is planning to make a (much smaller) splash of its own … in California. As Sunrun announced today, the self-proclaimed “nation's leading home solar, battery storage and energy services company” is teaming up with Southern California Edison (SCE), “the largest utility in Southern California and one of the largest in the country,” to launch “one of the first residential energy storage virtual power plants in operation in the United States.”

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