Price Forecast:

Bullish Case: Increasing investor sentiment and strategic partnerships may propel SUN, particularly with call options showing strong interest at lower volatility. Historical returns also favor potential upward price movements.

Bearish Case: Market skepticism is apparent with very high implied volatility on puts, suggesting concern over potential downturns. Continued price stagnation could erode trust among investors.

Potential Outcomes:

• Growth in fuel sales boosts earnings: 40%
• Legal challenges impact stock negatively: 30%
• Market stability supports gradual price increase: 20%
• Environmental regulations hinder profitability: 10%

Trading Oracle: Consider initiating a bullish debit spread by buying SUN 01/17/2025 $52.50 calls and selling $55 calls. Implied volatility suggests favorable conditions, capitalizing on potential price recovery. The long vol strategy suits the current market environment as SUN has shown resilience in historical returns.

December 21, 2024