Valero Energy has dropped sharply in recent months, but traders are looking for a bounce by early August.
optionMONSTER's market scanner shows that 5,200 Weekly 51 calls expiring on Aug. 5 were purchased for $0.87 to $1 yesterday. This represents new positions, as open interest in the strike was a mere 44 contracts before the session began.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
VLO rose 0.59 percent to $49.54 yesterday but is down 19 percent in the last three months. The oil refiner is expected to report earnings before the market opens on July 28.
Overall option volume was about average in VLO yesterday.
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