The most traded options contracts on the refiner thus far in the session are the Dec $39 strike calls, with roughly 15,000 contracts exchanged versus open interest of 5,090 contracts. Time and sales data indicates most of the calls were purchased at a premium of $0.38 each. The far out of the money call options may be profitable at December expiration should shares in Valero Energy rally 15% over the current price of $34.18 to exceed the breakeven point at $39.38. Shares in VLO last traded above $39.38 back on June 10th. The company is scheduled to report third-quarter earnings on October 29th.
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