Short VLO at the open today or better.
Stop Loss on the zone of 51.00 to 54.00 for 50% and the remaining around 58.43.
Target is in $30â€²s. It will take some time to get there. Long term play.
VLO has issued a statement with preliminary estimate of its earnings. The earnings are way above published consensus numbers but only slightly above whisper numbers. The good earnings for VLO are the result of the wide spread between WTI and Brent as well as wider discounts on sour crude. Our thesis is that the spread will narrow and so will the discount.