Electric utility NextEra Energy (NEE) is down 5% over the past year, but is surging higher from well off its lows. One trader sees shares continuing to rise over the next 13 months.
That’s based on the June 2025 $80 calls. With 407 days until expiration, 4,685 contracts traded compared to a prior open interest of 109, for a 43-fold rise in volume on the trade. The buyer of the calls paid $4.90 to make the bullish bet.
NextEra recently traded for about $71.50, meaning shares would need to rise $8.50, or about 12%, for the option to move in-the-money. That’s well over the stock’s 52-week high of $78.53, set last May.
Operationally, the utility has had a mixed year, with revenues down nearly 15%, even as earnings are up nearly 9%.
However, longer-term growth looks likely given the company’s geographic market, which includes much of Florida where population growth continues to surge. Shares sold off during last year’s interest rate fears, but have now spent the past few months in an uptrend.
Action to take: Long-term investors may like shares here. The stock pays a 2.9% dividend, but further growth potential could push both shares and the dividend higher.
For traders, the June 2025 calls are a long-term bet that could see high double-digit returns on a continue ramp higher from shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.