Earthstone Energy (ESTE) rising here with 2,500 July $10 calls bought from $4.60 to $5.10 to open, unusual volume for the name driving IV higher mid-day. The $1.45B company is forming a nice bull flag on the daily under $15 with a breakout targeting up to $20. Shares trade 4.35X earnings, 3.4X sales, and 6.25X FCF with 11% short float. ESTE is a small-cap E&P with assets in the Midland Basin and Eagle Ford. Alliance Global raising estimates in February noting that the recently announced acquisition of privately held Bighorn Permian Resources accelerates Earthstone’s progression toward capital returns to shareholders.

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