Vistra operates one of the nation’s largest integrated retail electricity and power generation companies in the United States, serving approximately 5 million customers across 20 states and the District of Columbia. It operates a diversified portfolio encompassing over 41,000 megawatts of generation capacity, including natural gas, nuclear, coal, solar and battery energy storage systems. Headquartered in Irving, Texas, it’s in competitive wholesale and retail markets, particularly in the PJM Interconnection and Ercot regions. The company has also made substantial investments — exceeding $2 billion since 2020 —in renewable energy and grid-scale battery storage, positioning it as a leader in the energy transition while maintaining a robust baseload from nuclear and gas assets. As of mid-2025, Vistra reported trailing 12-month revenue of approximately $16.7 billion. Up roughly 50% year to date, it’s clear that Vistra — and utilities more broadly — are not the slow and steady “conservative” investments they once were. Instead, many companies in the sector are being propelled by the hottest trade going. The bullish thesis for Vistra rests on its unparalleled alignment with surging electricity demand, driven by the growth of artificial intelligence data centers and broader electrification trends. Projections indicate that U.S. power needs could double by 2030, with Vistra’s nuclear fleet — among the cleanest baseload sources — ideally suited to meet this demand without incurring emissions penalties. Recent strategic mergers, including the $18.8 billion acquisition of Energy Harbor in 2024, have bolstered its nuclear capacity by 4,000 MW, enhancing portfolio resilience and earnings visibility. Financially, Vistra exhibits sector-leading efficiency, with adjusted EBITDA guidance for 2025 of $4.1 billion-$4.5 billion, supported by strong free cash flow exceeding $2 billion annually. Trading at a forward P/E of 12x, below peers, the stock offers an attractive valuation amid PJM market tailwinds and regulatory support for carbon-free power. As attractive as Vistra’s valuation is, it’s difficult to chase a stock up so sharply year to date. The stock price is not the only thing that’s elevated; so are long-dated options premiums. Implied volatility over the next year is over 50%. Translation? The options market is expecting Vistra to move approximately $100 between now and January 2027. This presents an interesting opportunity, as a long-dated call/spread risk reversal would enable one to capture potential upside with reduced downside exposure. Let me illustrate: A long-dated January 2027 150/210/260 call spread risk reversal can be entered for roughly even money as of Friday’s closing prices: The maximum gain of this trade is $50 per share over 475 days. The max risk is $150. Perhaps that seems asymmetric in a bad way. But is it? Vistra is a utility company – one that has earned roughly $5/ 5/share over the past 12 months and has grown topline consistently every year but 2020, when electricity demand plummeted due to forced shutdowns due to the pandemic, and even then, revenues fell by only 3.1% and the company was still profitable. Put differently, while this is a fast-growing company, it is ultimately in a very stable business. If the downside is that one purchases the stock at $150 per share, a 27.5% discount to the current stock price, then that seems like a reasonable risk to take. Consider this: the stock would need to lose ~52% of its value to lose $50 per share on this trade; on the other hand, if it gains 24% the holder would make $50. I don’t generally provide examples of options trades this long-dated, and yes, the trade is asymmetric; however, I think the chances that this stock rises by 24% or more over the next 16 months are considerably greater than the chances it falls by 52% over the same period. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.