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%.
