Trade of the Day: Valero Energy Corporation (NYSE:VLO)

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Today, we’re opening a new bearish trade on Valero Energy (VLO). Energy prices are down as inventories have continued to levitate and new supply/demand changes from Iraq and China hit the market. Lower oil prices are not always a bad thing for refiners, but, in this case, demand for distilled gas products are still expected to be low in the near term, which has been one of the factors driving aggregate prices lower.

We like a bearish position on VLO as the stock hits prior resistance and is starting to roll over. We are targeting $50 per share as potential support, which should be plenty of room for some short-term profits.

Buy to open the VLO October 52.50 Puts (VLO161021P00052500).

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/trade-day-valero-energy-corporation-nysevlo/.

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