OptionsHouse

Options Trading News

December 28, 2012  Fri 4:45 AM CT

VLO: SEE CHART GET CHAIN FIND STRATEGIES
Valero is not far from its highs of the year, and one trader is looking for more gains in the oil-refining company.

optionMONSTER's Heat Seeker tracking system detected the purchase of 3,000 January 36 calls in a single print for $0.31 yesterday. This is a new position, as the volume was above the strike's open interest of 2,564 contracts before the session began.

VLO rose 0.45 percent yesterday to close at $33.83. Shares had gone on a scorching run from $20 to its 52-week high of $34.49 from early June to mid-September, then pulled back to support at $28 before resuming its climb.

Yesterday's long calls, which lock in the price where traders can buy the stock, are looking for VLO to rise roughly 9 percent in the next three weeks. If the shares are below the $36 strike price at that time, the calls will expire worthless. (See our Education section)

Overall calls in the name outnumbered puts by nearly 4 to 1.
Share this article with your friends


Related Stories

VLO

How the bears are targeting Valero

March 3, 2015

The company has done well along with other refiners, but yesterday the bears racked up some fast money as selling pressure hit the broader energy sector.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »