Since December 2013, we’ve closed a total of 38 winning positions… and only six losers. That’s after we banked 39% and 44% gains on the Hershey (HSY) November 90 and January 90 calls just last week.
Not too shabby…
Today, we’re adding oil and gas drilling company, Enerplus Corporation (ERF) to the portfolio, as an immediate buy. Fundamentally, it’s undervalued with a PEG ratio of just 0.39, telling us its’ 61% undervalued to growth. Industry PEG average sits closer to 0.77, which is also undervalued.
Technically, after a drop from $25 to $22, the underlying stock has caught support, consolidating at $22. MACD is over-extended to the downside. RSI is just beginning to reverse north. And DMI (directional movement indicator) needs to revert to mean, as well.
We’re recommending that you buy to open the ERF January 2015 22 calls up to $1.60.
Hold all other open positions. And stay tuned for new trade opportunities shortly. We’re hard at work on a new batch of trades.