Call buyers finding value in Valero

By
A A A

Valero Energy has been holding support for the last week, and now the bulls are back.

optionMONSTER's Heat Seeker tracking program detected heavy buying in the September 54.50 calls yesterday, with about 5,500 contracts trading for $1.24 to $1.46. These are clearly new positions, as open interest in the strike was a mere 66 options before the session began.

Long calls lock in the price where the stock can be purchased, providing potentially significant leverage to the underlying shares. But the contracts can quickly lose value if the stock stalls or pulls back. (See our Education section)

VLO rose 0.69 percent to $54.18 yesterday, continuing to hold above its 100-day moving average. The oil refiner gapped lower in June on news the U.S. government would allow limited oil exports, but the stock has rebounded in the last month.

Total option volume in Valero reached 16,500 yesterday, well above its daily average. Overall calls outpaced puts by 3 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: VLO

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

88%

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com