Thu, Oct 2, 2014, 12:48 AM EDT - U.S. Markets open in 8 hrs 42 mins

Recent

% | $
Quotes you view appear here for quick access.

Linn Energy, LLC (LINE) Message Board

  • ronharv ronharv Nov 2, 2012 3:00 PM Flag

    Covered Calls

    I'm guessing that Linn, barring an off-the-cliff economic collapse (will Norquist rejoice?), will raise the distribution 5% in April and announce it several days after the April options expire. Maybe that'll be good for a 5% move from Linn's current PPS, either in anticipation or sometime after. Still, I find the April 44 options comfortably attractive. So during the week I sold covered calls in about half my core holdings of LINE for .85 and then the other half for .90, each time for a nickel more than the bid price. About $10K got dumped into my account, and if I happen to lose the units at 44, well, that's certainly a good price, which may not even hold. Whatever transpires I'll do well. Of course, in the unllikely event that someone buys Linn for $50 I'll be rubbing ashes on my forehead.

 
LINE
29.58-0.56(-1.86%)Oct 1 4:15 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.