EIX Tanking

u/StandardObject91 · Reddit — r/ValueInvesting · August 31, 2026 at 15:27 · ⬆ 15 pts · 💬 14 comments  | View on Reddit ↗
AI Summary

Summary

  • EIX is down ~25% after California failed to pass wildfire liability legislation; author views selloff as overreaction.
  • Author sees 6.5% dividend yield and 2.8x coverage as support, expects possible dead-cat bounce.

  • He bought Sept. 18 $55 calls, making this a short-term event-driven bounce trade rather than deep value DD.

  • Quality assessment: Speculative short-term trading based on event reaction; limited fundamental research beyond dividend/coverage metrics.

Score 15
Comments 14
Upvote % 90%
Ideas
u/StandardObject91 Reddit r/ValueInvesting
EIX dropped 25%; dividend yield 6.5%, coverage 2.8x, and the trigger was failed CA wildfire legislation. The selloff may be overdone for an event that "may never happen," creating a bounce opportunity. Long EIX for a short-term rebound; author is positioned with Sept. 18 $55 calls. Actual wildfire liabilities, future legislation failure, continuation of downtrend, and bounce failing.
EIX HIGH
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This Reddit post, published August 31, 2026, features u/StandardObject91 discussing EIX. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/StandardObject91  · Tickers: EIX