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Current DateTime: 02:22:15 28 Nov 2009
LinksList Documentid: 30328029
Why Traders are Bullish on This Oil Refiner
Published: Friday, 16 Oct 2009 | 7:50 AM ET
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By: Chris McKhann
writer, OptionMonster

Traders are making bullish bets on the Valero Energy options that expire at the end of today's session.

The oil refiner was up more than 7 percent on the session, closing at $20.15. Valero [VLO  Loading...      ()   ] appears ready to make a run back up to the September highs just above $21 and continue its uptrend from July lows just above $15.

Option traders were very active in the October 19 and 20 calls throughout the day, according to OptionMonster's real-time tracking systems. More than 17,000 of the 19s traded and more than 30,000 of the 20s changed hands. The action at both strikes was well above open interest, indicating newly opened positions.

One of the biggest trades appeared to be one investor rolling up calls, selling profitable October 19 calls and putting some of that capital to work in the October 20s with the expectation of further increases today.

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Options Trading School:

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Valero Energy Competes With:

BP [BP  Loading...      ()   ]

Chevron [CVX  Loading...      ()   ]

Exxon Mobil [XOM  Loading...      ()   ]

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Chris McKhann is an analyst and writer for OptionMonster.

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