Weekly Calls In Play On The Walt Disney Company (DIS) As Shares Rise To Record Highs

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Valero Energy Corporation (NYSE:VLO) – Shares in Valero Energy Corporation (NYSE:VLO) are on the rise today, up 1.7% at $41.42 as of 11:50 a.m. ET ahead of the company’s first-quarter earnings release prior to the opening bell on Tuesday. Big prints in weekly calls on Valero Energy Corporation (NYSE:VLO) in the early going this morning suggests some traders are positioning for the price of the underlying to extend gains in the near term. The May 03 ’13 $42.5 strike calls are the most active contracts on Valero by volume, with upwards of 5,900 lots in play versus open interest of 80 contracts. Most of the $42.5 calls, including a single print of 4,136 contracts, appear to have been purchased for an average premium of $0.56 apiece. Call buyers stand ready to profit at expiration this week in the event that Valero’s shares rally another 4.0% over the current price of $41.42 to surpass the average breakeven point on the upside at $43.06. The May 03 ’13 $42 strike call options are active as well, with around 600 lots purchased earlier in the session at an average premium of $0.69 each. Shares in Valero Energy Corporation (NYSE:VLO) are up roughly 70% since this time last year.

Caitlin Duffy
Equity Options Analyst

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