VNOM Forecast + Trading Strategies


Bullish Case: VNOM's consistent price appreciation and mostly bullish options trades underscore strong investor confidence, supported by its mean-reverting nature pointing to continued moderate growth.


Bearish Case: The flat volatility surface and slightly negative forecast correlate with potential stagnation or minor pullbacks. Market complacency may limit substantial gains, suggesting cautious optimism.


Potential Outcomes:

1) 50% moderate uptrend with mean-reversion.

2) 30% market correction due to low volatility and profit-taking.

3) 20% sharp rise on unexpected positive news or external catalysts.


Trading Oracle: Opt for a bullish short volatility strategy. Sell $40 put and buy $37 put, expiring in 30 days. This leverages low volatility and current price trends for high probability profit and positive edge. This strategy provides strong delta neutrality and benefits from time decay.


July 23, 2024


Viper Energy Forecast

VNOM      Viper Energy











Correlated Assets

Assets that tend to move strongly with VNOM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.84)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.5)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.72)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.76)



Uncorrelated Assets

Assets with little price relationship to VNOM



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.5)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.72)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.76)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.84)



Anticorrelated Assets

Assets that tend to move strongly against VNOM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.84)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.5)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.72)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.76)





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