T/Yodi – I agree with you. Just thought it was a good idea to lay out my own thought process in picking these trades.
VLO/Learner – It's way ahead of itself but you'll have to wait for earnings for it to correct, most likely. Last Q they made a fat $1.91 due to an unusually favorable crack spread and people are extrapolating like that's what they'll earn from now on. Usually, more like $1-$1.25. Up 2.25% today on no news at all – it's just a market frenzy but you can always add a few more calls to cover and put stops on your lower ones.
Again, this is why the market will crash – you can't just randomly price companies up 50% and expect them all to perform for you.
December 8th, 2017 at 12:28 pm
T/Yodi – I agree with you. Just thought it was a good idea to lay out my own thought process in picking these trades.
VLO/Learner – It's way ahead of itself but you'll have to wait for earnings for it to correct, most likely. Last Q they made a fat $1.91 due to an unusually favorable crack spread and people are extrapolating like that's what they'll earn from now on. Usually, more like $1-$1.25. Up 2.25% today on no news at all – it's just a market frenzy but you can always add a few more calls to cover and put stops on your lower ones.
Again, this is why the market will crash – you can't just randomly price companies up 50% and expect them all to perform for you.