20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. 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 positions 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.
Today, Benzinga's options scanner spotted 8 options trades for Valero Energy.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $174,000, and 7, calls, for a total amount of $538,455.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $135.0 to $185.0 for Valero Energy over the recent three months.
Analyzing Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Valero Energy's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Valero Energy's substantial trades, within a strike price spectrum from $135.0 to $185.0 over the preceding 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 | 06/21/24 | $6.15 | $6.0 | $6.05 | $180.00 | $302.5K | 3.3K | 529 |
| VLO | PUT | TRADE | NEUTRAL | 07/19/24 | $5.85 | $5.75 | $5.8 | $160.00 | $174.0K | 348 | 305 |
| VLO | CALL | TRADE | BEARISH | 06/21/24 | $39.4 | $38.65 | $38.65 | $135.00 | $65.7K | 910 | 1 |
| VLO | CALL | SWEEP | BEARISH | 04/19/24 | $27.4 | $26.5 | $26.5 | $145.00 | $50.3K | 1.3K | 30 |
| VLO | CALL | TRADE | BULLISH | 06/21/24 | $32.7 | $31.95 | $32.43 | $140.00 | $32.4K | 1.3K | 10 |
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.
Valero Energy's Current Market Status
- With a trading volume of 1,155,662, the price of VLO is down by -1.78%, reaching $170.45.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 10 days from now.
What Analysts Are Saying About Valero Energy
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $181.6.
- Maintaining their stance, an analyst from TD Cowen continues to hold a Buy rating for Valero Energy, targeting a price of $190.
- An analyst from Goldman Sachs persists with their Sell rating on Valero Energy, maintaining a target price of $171.
- Consistent in their evaluation, an analyst from Wells Fargo keeps a Equal-Weight rating on Valero Energy with a target price of $184.
- An analyst from Scotiabank has decided to maintain their Sector Outperform rating on Valero Energy, which currently sits at a price target of $165.
- Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Valero Energy, targeting a price of $198.
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.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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