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Valero Energy Call Spread Idea

Posted on July 02, 2008

You would think that with oil prices skyrocketing, the people who turn barrels of crude oil into usable products like gasoline for our cars and heating oil for our homes would be absolutely minting money. Well, unfortunately, when the refineries' input commodity (crude oil) price skyrockets, the margins for the finished products (outputs) actually get compressed. This margin is often referred to as the Crack Spread and it's something that is highly cyclical and thus, the refinery stocks that live and die by the spread are also highly volatile. One such name that we've followed for quit...

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crude , oil , refinery