Valero (VLO) Offering Possible 8.23% Return Over the Next 3 Calendar Days

Valero's most recent trend suggests a bullish bias. One trading opportunity on Valero is a Bull Put Spread using a strike $99.00 short put and a strike $94.00 long put offers a potential 8.23% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $99.00 by expiration. The full premium credit of $0.38 would be kept by the premium seller. The risk of $4.62 would be incurred if the stock dropped below the $94.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Valero is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Valero is bullish.

The RSI indicator is at 70.31 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Valero

Increasing Output and IMO 2020: Oil Price Outlook Stays Low as Headwinds Abound
Fri, 08 Nov 2019 20:04:50 +0000
Oil companies with complex refineries stand to benefit the most from supply and regulatory changes Continue reading…

Valero fights to keep $122M tax refund lawsuit alive
Thu, 07 Nov 2019 16:52:48 +0000
The company says the Internal Revenue Service failed to credit for the use of some alternative fuels in 2015.

Valero is a Refined Choice for Energy Investors
Thu, 07 Nov 2019 10:00:00 +0000
Valero Energy (VLO) needs no introduction, as it's one of the country's leading refiners. The stock is strong because business is good and getting better, with investors turning more bullish on cyclical names, suggests Mike Cintolo, editor of Cabot Top Ten Trader.

Valero Shuts Two Ethanol Plants a Year After Green Plains Deal
Thu, 07 Nov 2019 04:00:00 +0000
(Bloomberg) — Valero Energy Corp. has temporarily shut two of the three ethanol plants it bought from Green Plains Inc. just a year after the purchase, according to people familiar with the matter and the U.S. fuel refiner’s website.The second-biggest U.S. oil processor by capacity has now stopped operations at its corn biofuel facility in Riga, Michigan, said the people, who asked not to be identified because the information is private. A biorefinery in Bluffton, Indiana, is down for a “turnaround” and will resume production “as soon as favorable economic conditions exits,” the company said on its website.U.S. ethanol producer Green Plains sold the two plants and another facility in Lakota, Iowa, to Valero for $300 million in October last year.The closures highlight the challenges the American biofuels industry has been facing, with overproduction, the absence of Chinese buying due to U.S. President Donald Trump’s trade war with the Asian nation, and higher corn costs after a delayed harvest this year.A representative for Valero didn’t return phone and email messages seeking comment.Weak margins have prompted some plants to slow down production or cease operations altogether. Three Rivers Energy, an Ohio plant with capacity to produce 50 million gallons a year, said last month it had temporarily idled. REX American Resources Corp., which has interests in six U.S. ethanol plants, is running some facilities as few as 10 days a month.Green Plains, which said its ethanol margins were negative in the third quarter, said it reduced output due to seasonal maintenance, while trader Andersons Inc. said it slowed production by 20% to 25% “at times when it didn’t make sense” because of high corn costs. Agricultural giant Archer-Daniels-Midland Co., which had already announced plans to spin off its dry ethanol mills, is in the initial stages of talks to form what could be a joint venture or sale.The wave of shutdowns in the U.S. has helped bring the ethanol market back to balance, according to Pat Bowe, Andersons’s chief executive officer. Margins started to improve in late-September and have turned positive, Green Plains said on its investor call on Wednesday.Valero’s Lakota facility, part of last year’s deal with Green Plains, is still accepting corn deliveries this week, according to the company’s website, a sign the facility is likely operating.\–With assistance from David Wethe.To contact the reporters on this story: Michael Hirtzer in Chicago at mhirtzer@bloomberg.net;Isis Almeida in Chicago at ialmeida3@bloomberg.netTo contact the editors responsible for this story: Tina Davis at tinadavis@bloomberg.net, Pratish NarayananFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

MPC, VLO, and PSX: Who Surprised Wall Street in Q3?
Wed, 06 Nov 2019 15:58:36 +0000
Downstream firms Marathon Petroleum (MPC), Valero Energy (VLO), and Phillips 66 (PSX) had a mixed performance in the third quarter.

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