Dykstra's Deep-in-the-Money Call: Valero
Part of the decline in the last week can be attributed to a drop in gross refining margin across the industry. However, this company has a return on equity of more than 20% and nearly 80% of its stock is held by institutions, which are generally considered buy-and-hold investors.
At today's price, Valero is an absolute steal. That's why I am placing a limit order to buy 10 January $35 calls (VHBAG), paying $10.90 or better. I will place the GTC sell order $1 higher than the fill price so I can grab a $1,000 victory as soon as it comes. So, if your order is filled at $10.90, you should immediately place a good-till-cancel (GTC) order to sell at $11.90. Always remember: Life is a journey, enjoy the ride!- Loading Comments...
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