Valero Energy Corporation (VLO) is an oil and gas refining company that produces gasoline and a range of other refined products. The company’s stock is currently trading around $54.55 in a 52 week range of $33.00-$55.96. The stock has been doing well this year with shares rallying more than 7.7% year to date. Options traders seem to think this trend will continue as we have been seeing some very bullish options trades hitting the tape during today’s trading session. Earlier this morning a trader bought 3,221 VLO May 57.5 calls for $1.24. Over 6,000 contracts have now traded on that line and these blocks of calls being bought represent very bullish trades in VLO. With shares of VLO trading well above the Ichimoku Cloud we believe that order flow this strong signals a long opportunity in VLO.
Trade: I bought the VLO May 57.5 Calls for $1.30
Risk: $130 per 1 lot
Reward: Unlimited
Breakeven: $58.80
Andrew Keene
http://keeneonthemarket.com
