Sell Refiners Valero and Tesoro Ahead of Earnings says Vieira Trading to dump Valero shares at $72 while Wall Street has been raising targets. Investors can always buy back shares of refiners at much better prices after Wall Street corrupt stock analysts downgrade refiners such as Valero (VLO) and Tesoro (TSO).
Foolish investors have been buying stocks with momentum ahead of the stock market crash, instead of buying them after markets crash.
The American investor is the most stupid in the world. Wall Street knows it and they play with this fact deceiving investors ahead of the collapse. Sell everything that moves ahead of the big crash. The collapse is now happening daily! There’s no bottom, ask Carl Icahn and Bill Ackman sank in losses for years to come.
Tesoro is down sharply today, and traders are positioning for a possible continuation of the bearish momentum.
About 12,500 Weekly 90 puts expiring on Feb. 5 were purchased for $2.72 to $4.55 today. Volume was more than 490 times open interest at the strike, which indicates new money was put to work. Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop.
TSO is down 12.16 percent to $91.99 in afternoon trading and has slipped 2 percent in the last month. The oil-refining company is scheduled to report earnings after the close on Feb. 1, four sessions before today’s puts expire. Overall option volume in the name is twice its daily average. Puts outnumbered calls by a bearish 5-to-1 ratio.
The Motley Fool is buying Valero shares at $72. Dump on them ASAP. Live trade Call on live streaming!