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    Valero Energy: Dividend Capture With An Option Hedge

    Thu, 02/09/2012 - 14:51 EDT - Seeking Alpha
    • Robert Weinstein
    • VLO

    By Robert Weinstein:There are many dividend capturing strategies, but using a call option to hedge against downward price risk is my favorite. I have found I must be highly selective, I selected the following company, in part, based on the combination of gaining a relatively good option premium with dividend added on.Valero Energy Corporation (VLO) operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Retail, and Ethanol. The company was founded in 1955 and is based in San Antonio, Texas.Valero Energy Corp Yield: 2.41% Dividend Amount: $0.15Ex-Dividend Date: February 13, 2012Beta: 1.44Here is a look at the fiscal year revenue.
    Click to enlarge

    I research the different call options and calculate the expected probabilities based on Beta, Bid, Offer, Volume traded the current day, open interest, and time value / implied volatility. The options offer some level of protection fromComplete Story »

    • Original article
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      By Robert Weinstein:With a review one may find many stocks worth investing in offering dividends. Also, dividends can be a very good and steady source of revenue and with each dividend payment received, investors continue to lower original risk.Using a call option to hedge against downward price risk is my favorite dividend capture strategy. I have found I must be highly selective in the companies selected.

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    • Valero At Earnings: Use Options To Hedge Against The Bearish Trend

      By John Mylant: There are many investors, analysts, and writers bullish on Valero (VLO). Still in a downward trend, but considered much undervalued by the numbers, it may be a good investment. But we are of the opinion that the stock should be hedged against loss by investors until a bottom is defined.(Click chart to expand)

    • CA, Inc. Dividend Capture With A Call Option Hedge

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    • Valero A Speculative Play

      By Jim Van Meerten: Energy is a highly followed industry and Valero Energy (VLO) is a highly followed petroleum refiner. Despite recent weakness in oil prices, overall the energy sector has had a very good year. After a recent dip Valero's price is starting to recover as revealed in this hourly trading chart for the past month provided by Barchart:

    • Valero: Is Now the Time?

      Bret Jensen submits:Company Overview: Valero Energy Corporation (VLO) operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Retail, and Ethanol. The Refining segment engages in refining operations, wholesale marketing, product supply and distribution, and transportation operations.

    • Valero Stock Rising - Current Investors Can Hold, But New Buyers Beware

      By ValueMax:Valero Energy (VLO) operates as an independent petroleum refining and marketing company. Valero's headquarters are in San Antonio, Texas. The company has a market cap of $17.4 billion and a stock price of around $32; it is a company on the rise.

    • Why Valero Is A Buy After Interim Guidance

      By Bret Jensen:Refiners have had a tough month as both Tesoro (TSO) and Valero (VLO) have had significant pull backs over that time span. However, I think Valero has had some positive news recently, is deeply undervalued and seems poised to bounce back in short order.Key Recent Events 

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