Refiner Insiders Buy Most Stock Since 2000 on Oil Bet

Quote from ByLoSellHi:

These stocks are sucking wind badly. Like someone said about GE and some big caps, insider buying isn't always an accurate tell.
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A 10,300 share buy by Valero Director Engelhardt at $49.07 on May 2nd doesn't look so hot. But then again, it probably isn't cramping his style much because he bought 560,175 shares of BTU back on Feb. 5th around $52.00

:D
 
I wouldnt touch these until rate hike, so not for a long time. Certainly not till next year.

Oil may indeed brake down, but I wouldn't put my money on it. Better trades out there until rate hike.
 
I'm licking my wounds on those FTO Jan 09 calls.

There is a chance that demand destruction is taking place above 140 here, and the inventory data will lag for a while, and when it does show up on a sustained basis, these stocks will rally, even without any fed tightening (because oil may break).

Some wiser people than I are saying that's why the producers are not seeing their stock rise even though the underlying asset has risen - investors or potential investors see demand destruction as a real risk.

You have to admit that it is a real possibility.
 
Buylosellhi,
I feel your pain, but I think your logic was sound. FTO VLO and TSO all will rebound, but the hardest part is to guess the timing. You were wise to buy long calls. I think by Jan 09, you still have a decent shot to make money.

Good luck,

freewilly


Quote from ByLoSellHi:

I'm licking my wounds on those FTO Jan 09 calls.

There is a chance that demand destruction is taking place above 140 here, and the inventory data will lag for a while, and when it does show up on a sustained basis, these stocks will rally, even without any fed tightening (because oil may break).

Some wiser people than I are saying that's why the producers are not seeing their stock rise even though the underlying asset has risen - investors or potential investors see demand destruction as a real risk.

You have to admit that it is a real possibility.
More...
 
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