Option trade on a bullish energy company

August 24, 2023 - 12:19 pm

Oil prices have moved up about $10/barrel in the past 45 days or so, and we've found several companies that benefit from higher oil prices that aren't the major oil companies which are still migrating to cleaner fuel sources.  Shares or Energy Transfer (ET) have been in an uptrend and their options are trading cheaper than they should, likely because there is low volatility in the shares.  With revenues of ~$90B, $8B in EBIT, and a 8.5% dividend yield you could buy the stock or buy calls, both are good plays.

We are buying the April 2024 $14 Calls for $0.45 cents with the shares trading around $13.  This should be a low risk trade as the stock is in an uptrend with all moving averages signalling a strong bullish trend!  Get on board this trade now....