Valero (VLO) options are seeing action after the stock was highlighted in the Striking Price column in the latest issue of Barrons. According to the piece, the companys profit margins have been shrinking due to the fact that oil prices are rising faster than the price of its products, like gasoline. However, the stock might now have found a floor and could bounce back up to $52.00 a share. With stock at $47.03 late Friday, Morgan Stanleys options strategist Robert Bodnar recommends the June 47.5 calls. Today, VLO rose $1.50 to $49.93 and the September 55 calls are the most actives. 6,229 have traded. In all, 21,000 VLO call options have already traded, or more than double the number of put options.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.