March 10, 2020 - MDT Alert (ET)

ET, of course, sold off with the crash of oil yesterday.

It is trading under its lower band on its daily & 60 minute chart.

This tells me how oversold the stock is.

To me, ET is not a true energy play, even though it is in the energy field. It provides the pipe lines to carry the oil. And it does carry a decent yield.

The call options have become quite expensive and as such, I am going to suggest another trade on ET.

Buy ET at the market, which is $7.50.

Then sell to open the March 20th - $8 call for $0.60.

These calls expire in a week and one half.

Limit the stock buy in to 500 shares or 3.7% of the nominal portfolio.

If these calls are executed next Friday, the return will be 14.7%.

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.