$EPD Ascending Triangle Breakout - Bullish Options Activity

EPD Closed above $27.75 recent resistance line appearing to break out from a bullish ascending triangle formation on the daily chart. Expecting further upside from here, targeting $30 level by March. Note: ER later this week.

Adding to the positive sentiment, we saw some bullish options activity today with about 3k $20.00 strike (deep ITM) Jan 2020 call options traded today vs OI of only 702. With the stock closing today just below $28.00, these contracts going for about $8.00/share with 12 months to expiration are 1.00 delta with essentially no time value - meaning projected volatility is currently very low.

Zooming out on the weekly chart, you can see the stock has been locked in a tight trading range between $24 and $30 for the last 3+ years, so the likelihood of breaking through the $30 level is fairly low, barring some positive fundamental changes/news items.




Note: Informational analysis, not investment advice.