- New Trades -
Enterprise Products Partners - EPD - close: 45.72
Why We Like It:
EPD is classified as a midstream energy company. What I like about it is the dividend. Right now investing in high-dividend stocks is popular and EPD is currently yielding 5.4%. Not only that but shares have broken out past major resistance at the $44.00 level in the past few weeks.
The stock doesn't move very fast but given the bullish breakout and high dividend I am expecting EPD to garner a lot more interest from the bulls. I am suggesting readers open bullish positions now at current levels with a stop loss at $41.75. More conservative traders could choose to wait and buy calls on a dip near $44.00 should the stock see a correction and they might also want to use a higher stop loss. Our long-term target is $59.00.
FYI: The Point & Figure chart for EPD is bullish with a $60 target.
I am listing the 2013 calls but there are also 2014s available (with a much wider spread).
- Suggested Positions -
Nov 21, 2011 - entry price on EPD @ --.--, option @ -.--
symbol: EPD1319A50 2013 JAN $50 call - current bid/ask $ 1.50/ 1.80
Chart of EPD:
Current Target: $59.00
Current Stop loss: 41.75
Play Entered on: 11/21/11
Originally listed in the New Plays 11/19/11