Valero Energy Options Trading Insights: Puts and Calls Analyze

Valero Energy Corp sees new options trades for April 17th expiration. Investors looking for potential boosts can explore put and call contracts as attractive trading strategies, especially given current market pricing and yields.

Date: 20-02-2025

AI Rating: 6

Options Trading Overview: Valero Energy Corp (Symbol: VLO) is witnessing new activity in the options market with contracts for the April 17th expiration. The introduction of put and call options can impact stock prices as they reflect investor expectations.

Put Options: The put contract at the $135.00 strike price has a current bid of $3.90. If investors choose to sell-to-open this contract, they will have a cost basis of $131.10 if they are assigned. The current trading price is $137.09, meaning the strike price is roughly 2% below this price. With the put set to expire, there is a 57% chance it could expire worthless, translating to a 2.89% return on cash commitment and 18.84% annualized if successful.

Call Options: On the call side, the $140.00 strike price carries a bid of $4.70. If shares are purchased at $137.09 and the call is sold to open, it can yield a total return of 5.55% (excluding dividends) if the stock trades at or above $140.00 by expiration. The call has a 53% chance of expiring worthless, resulting in a potential 3.43% yield boost, or 22.36% annualized.

Volatility Considerations: The implied volatility for the put is at 31% while the call stands at 36%. Actual trailing volatility is also at 31%, which can influence the attractiveness of these options further.

Stocks: VLO