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Atlas Pipeline Partners LP Message Board

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  • jrp1324 jrp1324 Nov 24, 2010 9:36 PM Flag

    So where do we go

    The call premiums have not been that expensive for a while. I have made good money buying calls and riding them up. I think the potential gains are much less now so I do not own any.
    I would look at puts but am so heavy in APL that I would be foolish to double down on puts.
    I have been selling puts on Sandridge SD and MMR McMoRan. Premiums have been as high as 1% per week time value and I would not mind owning them. Premiums are high as people are expecting market moving news in the next few months. Sandridge is the Mississippian play in Oklahoma that APL is taking part in. There is some talk of it being a game changer for SD and might be a large bump for APL in a couple of years. The geology of the whole area is fascinating and continues to give more and more hydrocarbons.
    As far as selling while owning options they are easy to close out the same day if you want.
    FWIW I expect APL to be better than $30 in a year after listening to the last presentation. They have a similar dollar amount of internal opportunities as Laurel Mountain was going to provide next year. I could not tell if they meant $125 million or $250 million. They said they could add 60 million in capacity in West Texas for 10 million. I could not tell if that was because the consolidator plant was designed to be expanded easily or ??
    I also like that APL is back to being very oily.

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