<p>"And doct is mr bull market now… "</p>
<p>We’re breaking out of those little boxes that bceagle has referred to but I do own a lot of put spreads for protection and I’m still mainly in cash.</p>
<p>"I am braking rules the last two days… "</p>
<p>such as chasing the market higher??</p>
<p>VLO is a tempting short.</p>
<p>No…selling puts when the stock is weak…</p>
<p>Selling a lot more puts than you would want to be long if you got assigned…</p>
<p>Selling puts before an announcement…</p>
<p>Selling puts in a very speculative issue that can be volatile…</p>
<p>That’s what makes markets - to me it looks like a tempting long.</p>
<p>Interesting Philly Fed growth (by state) map:</p>
<p>[Only</a> three states contracting, latest Philly Fed data show - The Tell - MarketWatch](<a href=“Opinion and Commentary - MarketWatch”>http://blogs.marketwatch.com/thetell/2013/04/02/only-three-states-contracting-latest-philly-fed-data-show/)</p>
<p>BCEagle91, good link. </p>
<p>Thanks…</p>
<p>Last week, I sold 4/5 vlo 45 puts because I thought it was a good price to buy it at. Now I’m going to have to do a song and dance - I like it better here than at 45.</p>
<p>The stock stabilized the last couple of hours.</p>
<p>I don’t get the fall. The cost is less than a buck a share. Vlo is going to pass at least some of the cost to consumers. This doesn’t take effect for years…</p>
<p>[Refiner</a> shares fall on proposed EPA rules - Yahoo! Finance](<a href=“http://finance.yahoo.com/news/refiner-shares-fall-proposed-epa-200532566.html]Refiner”>Refiner shares fall on proposed EPA rules)</p>
<p>[Merrill</a> Matthews: About Those Tax Breaks for Big Oil . . . - WSJ.com](<a href=“Merrill Matthews: About Those Tax Breaks for Big Oil . . . - WSJ”>Merrill Matthews: About Those Tax Breaks for Big Oil . . . - WSJ)</p>
<p>Perhaps this bill has something to do with it.</p>
<p>
[Valero</a> (VLO -6%) says proposed new rules aimed… - Seeking Alpha](<a href=“http://seekingalpha.com/currents/post/921391]Valero”>Valero (VLO -6%) says proposed new rules aimed at reducing sulfur content in gasoline would cost... (NYSE:VLO) | Seeking Alpha)</p>
<p>Yeah… That’s right. </p>
<p>The company is worth 23 billion or so</p>
<p>Maybe the stock should have dropped 1 percent or 2…</p>
<p>Yeah I know about and it’s bs</p>
<p>The VLO chart looks like a short, doesn’t it? Also there is an unfilled gap on January 28, 2013 at 39.</p>
<p>So what is the plan…doct?</p>
<p>Go for it - I wouldn’t short anything that has dropped 6 percent in a single session particularly on something that may not even happen - its an over reaction.</p>
<p>Ok…</p>
<p>This trade was not my standard type of trade. I was going to buy vlo last week but wanted to buy it at the lower price of 45 which was only about .43 lower than the stock price.</p>
<p>But you like vlo, right?</p>
<p>Can it be a core investment?</p>
<p><a href=“http://www.fool.com/investing/general/2013/04/02/refiners-keep-rewarding-shareholders.aspx[/url]”>http://www.fool.com/investing/general/2013/04/02/refiners-keep-rewarding-shareholders.aspx</a></p>
<p>Well there are a number of things I can do:</p>
<ol>
<li><p>Buy back the 4/5 45 for 2.67, sell the 5/18 44 for 3.05, net gain = .43-2.67+3.05 = .81 and if assigned at expiration, effective cost = 43.19.</p></li>
<li><p>Buy back 4/5 for 2.67 and sell the 6/22 43 for 3.2, net gain = .96, and if assigned at expiration, effective cost = 42.04</p></li>
<li><p>Buy back the 4/5 and sell the 6/22 42 for 2.7, net gain = .46, effective cost if assigned = 41.54.</p></li>
</ol>
<p>I’m leaning towards 2 or 3 but I’ll wait until tomorrow or Thursday to make the decision.</p>