Energy Stock for September Options Bulls

Group 1: Utility Sector Overview - Utility stocks are experiencing increased demand due to the energy requirements of AI data centers, with companies like Southern, Duke Energy, and EQT adapting to this surge [1] - Rising borrowing costs and operating expenses are expected to impact utility stocks, creating challenges in an AI-dominated ecosystem [8] Group 2: Vistra Corp (VST) Performance - Vistra Corp has been a strong performer, averaging a 4.4% return in September since its restructuring in 2017, with a 63% success rate of finishing higher during this month [4] - The stock has increased by 121% over the past 12 months and is close to its record high of $216.85 reached on August 5 [4] - Following a recent decline of 3.9%, the current price presents a favorable entry point for investors [4] Group 3: Options and Volatility - Options for Vistra stock are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 47%, placing it in the 8th percentile of the past year's readings [6] - The stock has historically outperformed volatility expectations, indicated by a Schaeffer's Volatility Scorecard (SVS) of 76 out of 100 [6] Group 4: Market Outlook - The upcoming Federal Reserve meeting is anticipated to influence market movements, with a 25 basis-point rate cut expected [7] - The personal consumption expenditures (PCE) price index showed a 2.6% increase in July, which, along with jobs data and consumer price index (CPI) readings, will be critical for assessing inflation [7]