Vermilion Energy Inc.
Panjang

VET: Earnings upcoming and cheap volatility deserve a trade

359
VET has been in an up-trending channel since mid 2017.
Currently trading towards the bottom end of this formation.
Technically looking positive in the short term and mixed in the longer term.
Earnings upcoming this week, with an improving oil environment.

Play the $30-40 range in the following way:
1. Buy ATM Mar 16'18 call and pay 0.80/share
2. This represents some 2.3% of the share price and is quite compelling
3. Await the earnings release on Thursday
4. On good earnings benefit from the long call position
5. On poor earnings, sell the $30 put towards the bottom of the range

Penafian

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