27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Investors with a lot of money to spend have taken a bearish stance on Valero Energy (NYSE:VLO).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with VLO, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 12 uncommon options trades for Valero Energy.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $130,382, and 9 are calls, for a total amount of $534,770.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $130.0 and $270.0 for Valero Energy, spanning the last three months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Valero Energy's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Valero Energy's whale trades within a strike price range from $130.0 to $270.0 in the last 30 days.
Valero Energy Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VLO | CALL | TRADE | BEARISH | 05/03/24 | $3.15 | $2.98 | $2.98 | $192.50 | $89.4K | 315 | 300 |
| VLO | CALL | TRADE | BULLISH | 01/16/26 | $52.0 | $51.05 | $52.0 | $150.00 | $78.0K | 724 | 15 |
| VLO | CALL | TRADE | BEARISH | 06/21/24 | $7.55 | $7.4 | $7.45 | $190.00 | $73.7K | 21.2K | 282 |
| VLO | CALL | SWEEP | BEARISH | 06/21/24 | $7.35 | $7.25 | $7.28 | $190.00 | $72.8K | 21.2K | 177 |
| VLO | PUT | TRADE | NEUTRAL | 06/21/24 | $59.3 | $57.3 | $58.4 | $240.00 | $58.4K | 60 | 15 |
About Valero Energy
Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has capacity to produce 1.2 billion gallons per year of renewable diesel.
After a thorough review of the options trading surrounding Valero Energy, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Valero Energy
- With a volume of 1,416,781, the price of VLO is down -0.04% at $183.31.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 17 days.
What Analysts Are Saying About Valero Energy
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $185.0.
- Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Valero Energy, targeting a price of $197.
- Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on Valero Energy with a target price of $178.
- Consistent in their evaluation, an analyst from Piper Sandler keeps a Overweight rating on Valero Energy with a target price of $198.
- An analyst from Barclays has decided to maintain their Overweight rating on Valero Energy, which currently sits at a price target of $179.
- Reflecting concerns, an analyst from Mizuho lowers its rating to Neutral with a new price target of $173.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Valero Energy, Benzinga Pro gives you real-time options trades alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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