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%.

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more

Today, I would like to make one more suggestion on a short term covered call.

And it will be on another stock I suggested in the past.  The stock is Dropbox Inc. (DBX).

DBX is trading around $19.70 as I write this.

Buy DBX at the market.

Then Sell to Open (1) March 13th - $20 Call for every 100 shares you buy.

You should be able to sell them for $0.50.

If the calls are assigned in two weeks, the return will be 4% for just under two weeks.

Based on the nominal portfolio, limit the stock buy to 400 shares or 7.8% of the nominal portfolio.

Today, I would like to make a suggestion on a short term covered call.

And it will be on a stock I suggested in the past.  The stock is Energy Transfer LP (ET).

ET is trading around $11.78 as I write this.

Buy ET at the market.

Then Sell to Open (1) March 13th - $12 Call for every 100 shares you buy.

You should be able to sell them for $0.35. 

If the calls are assigned in two weeks, the return will be 4.8% for those two weeks.

Based on the nominal portfolio, limit the stock buy to 500 shares or 5.9% of the nominal portfolio.