Is it time to buy the Valero August 70 calls now? It seems that Valero should have good earnings on July 26th, and gasoline prices may have hit a bottom. I know that Citibank downgraded the refinery sector, but I wonder if that is now priced in at this point? Would a refinery stock with more exposure to oil also (such as CVX) be a better play?
Looks like a decent breakout today on CVX. I am looking to get long the August 80 calls. However I am looking for a slight pullback to do so...maybe after the oil inventory number on Thursday. The Valero 70 calls look they may be a buy also, after the oil and gasoline numbers on Thursday. I believe that both companies will report good earnings on the 26th and 27th of this month, but I am wondering if CVX may have more upside potential due to its exposure to rising oil prices. Does anyone see CVX making it into the 90s in the next month or so?