Valero's most recent trend suggests a bullish bias. One trading opportunity on Valero is a Bull Put Spread using a strike $53.50 short put and a strike $48.50 long put offers a potential 14.68% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $53.50 by expiration. The full premium credit of $0.64 would be kept by the premium seller. The risk of $4.36 would be incurred if the stock dropped below the $48.50 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 61.8 level which suggests that the stock is neither overbought nor oversold at this time.
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Fri, 14 Mar 2014 21:03:00 GMT
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