The Jan35s of 2015 look like a real speculative bargain to me. I picked up 30 a few minutes ago and the premium averaged only 1.35 for a two-year play. making break-even at below 39. While a lot can happen in that 2-year time frame, Linn, with Berry's assets, an increasing DCF, and a higher distribution wouldn't surprise if it finally settled in the low 40's . . . or better.
Take a look at the Jan35s 2014 puts that can be sold for in the high threes........that means even if the stock gets "put" to you in Jan you will have only paid $31 and change for it. If it's above 35 you get to keep the premium and won't even have to take the stock.....looks more attractive to me??
Blue, I think that selling the puts at 35 almost a year out is a reasonable bet, although that's a long time to have the potential of a forced buy hanging over you. With sales of puts I get uncomfortable with anything more than, say, 6 months out. Right now I've got put sales up to my gizzard: 20 July 30s and 75 July 32s. Also, the Linn ITM 35s I mentioned offer an additional year before the strike with a decent chance for a three-bagger. I just hope that the political constituency for energy MLPs isn't compromised by too many peripherally related companies climbing on the bandwagon.