American Electric Skyrockets 3.83%, 52-Week High—Will the Bull Run Continue?

Summary
• AEP surges 3.83% to $113.40, hitting 52-week high of $113.66
• Beats Q2 earnings by 11.72% with $1.43/share on $5.09B revenue
• Announces $70B capital plan to meet 24GW new load by 2030

American Electric Power (AEP) is surging 3.83% intraday amid a blockbuster Q2 report and aggressive capital plans. With a $70B investment roadmap and 24GW of secured load growth, the stock is trading at its highest level in over a year. This move reflects robust demand for grid infrastructure and regulatory tailwinds, positioning AEP as a key player in the energy transition.

Earnings Surge and Capital Plan Ignite Investor Optimism
AEP's 3.83% rally stems from a record Q2 operating earnings of $1.43/share, beating estimates by 11.72%, and a $70B capital plan to meet surging demand. The company secured 24GW of new load by 2030, driven by data center growth and regulatory approvals. Management reaffirmed 6-8% long-term growth and raised full-year guidance to the upper half of its $5.75-$5.95 range. These developments signal confidence in sustained demand and regulatory clarity, particularly in Texas and Ohio, where large transmission projects are underway.

Electric Utilities Sector Volatile as NextEra Slides
While AEP soars, the Electric Utilities sector is mixed. NextEra Energy (NEE), the sector leader, is down 0.49% as rising capacity costs in PJM weigh on investor sentiment. AEP's outperformance reflects its aggressive capital allocation and load growth, contrasting with peers facing permitting delays and regulatory gridlock. The sector is under pressure from surging data center demand and aging infrastructure, but AEP's proactive approach to transmission expansion and rate-case approvals gives it a distinct edge.

Bullish Setup: ETFs and Options to Capitalize on AEP's Momentum
• 200-day average: $101.24 (well below current price)
• RSI: 66.02 (neutral to overbought)
• MACD: 1.57 (bullish divergence from signal line at 1.31)

AEP's technicals suggest a strong continuation of its bullish trend. The stock is trading above key moving averages and has momentum on the upside. For traders, the 113.40 level offers a strategic entry point with support at the 106.38 middle Bollinger Band and resistance at the 52-week high of $113.66. A breakout above 113.66 could target 116.00-118.00, while a pullback to 110.00 could test the 107.38 200D MA support.

Top Options Picks:
• AEP20250815C110
- Code: AEP20250815C110
- Type: Call
- Strike Price: $110
- Expiration: 2025-08-15
- IV: 12.72% (moderate)
- Leverage Ratio: 32.35% (high)
- Delta: 0.8599 (high sensitivity to price)
- Theta: -0.0710 (moderate time decay)
- Gamma: 0.0711 (high sensitivity to price swings)
- Turnover: 89,838 (liquid)
- Payoff at $119.07 (5% up): $9.07/share profit
- Why: High leverage and gamma make this ideal for short-term bullish bets.
• AEP20250919C110
- Code: AEP20250919C110
- Type: Call
- Strike Price: $110
- Expiration: 2025-09-19
- IV: 18.24% (reasonable)
- Leverage Ratio: 22.51% (high)
- Delta: 0.6799 (moderate sensitivity)
- Theta: -0.0378 (moderate time decay)
- Gamma: 0.0455 (moderate sensitivity)
- Turnover: 85,949 (liquid)
- Payoff at $119.07 (5% up): $9.07/share profit
- Why: Balances leverage and time decay for a mid-term position.

Action: Aggressive bulls should prioritize AEP20250815C110 for immediate exposure, while AEP20250919C110 offers a safer, longer-dated alternative. Both contracts align with AEP's technical setup and capital plan-driven fundamentals.

Backtest American Electric Stock Performance
The backtest of American Electric Power (AEP) performance after an intraday surge of more than 4% indicates generally favorable short-to-medium-term gains. The 3-Day win rate is 57.63%, the 10-Day win rate is 56.82%, and the 30-Day win rate is 53.90%, suggesting that AEP tends to maintain positive momentum following a significant intraday gain. The maximum return observed was 1.37% over 30 days, which implies that while the gains may not be substantial, they can still contribute to overall portfolio performance when combined with other investments.

Seize the Momentum: AEP's Bull Run Could Extend Through Q3
AEP's combination of regulatory tailwinds, capital plan clarity, and demand growth positions it for continued outperformance. While the sector faces near-term cost pressures, AEP's proactive transmission investments and secured load contracts mitigate risks. Investors should monitor the 113.66 52-week high as a critical breakout level and watch for follow-through volume above 4 million shares. With NextEra Energy (NEE) declining, AEP's outperformance highlights its leadership in the grid transformation. Aggressive traders can capitalize on the AEP20250815C110 call option for a high-leverage play, while patient investors should target the 107.38 200D MA support as a potential entry point.