HOUSTON--(BUSINESS WIRE)--Sep. 24, 2012-- Enterprise Products Partners L.P. (NYSE:EPD) today announced the commencement of a public offering of 8,000,000 common units representing limited partner interests in the partnership. Enterprise also intends to grant the underwriters a 30-day option to purchase up to 1,200,000 additional common units to cover over-allotments, if any.
Picked up 50 contracts of the Dec $50's for $3.6 (EPD is currently at 53.37). At the time I traded, the Nov's and Dec's appeared to have about the same price, so why not Dec's, right? ;).
Hope I didn't "miss" something with regards to the strike I chose. I notice everyone else is choosing the 52.5's. While normally I'm not one to go overly deep ITM for every last bit of extrinsic reduction, $50 strikes seem like a big discount (removes 40c/share off break-even).
Thoughts? I'm assuming the response would simply be that the total cash outlay for $50-strikes is 2x vs. the $52.5's and you guys would rather have a lot more leverage for the same $$, worth giving up 40c/share for?
did the same here but caught them at 3.90. Fewer contracts though. I was waiting for my amtg calls to mature today. I have never seen price appreciation like epd in the midst of a sale. It moved up more than a divy run hour to hour.
Got a filled on CQP @ 1.90 for the Nov22's. CQP is often squirly on events like EX's and news. It is so thinly traded that it doesn't take much to move the PPS. I hope we are approaching a bottom. I figure all of this week will see weakness and then the Oct run. Good luck!!
Good job Turbo and all others here on your purchases. They all look great, IMO. Looks like the spo is over...;-) What a great MLP. EPD is the AGNC of the MLP world, IMO. Remember that the former spo's carried weakness into the 7 trading days following the initial offering day.
I am still planning to add, each day, on any weakness. Good luck!!
Hooray an early Christmas present! I wish we could trade options in after hours!!!
Hi to everyone btw - Restaurant's going to be opening approx Oct 8th so there's a LOT going on lately... but am still keeping my hand in here too! GL to everyone!
You are not the only one stuck on the wrong side of this SPO,I have 52.50 dec calls.Hopefully we at least BE by Ex day.I knew things were running too well .At least I only have a small position and any loss will be offset by my BMY calls;they're ramping up every day.
Sentiment: Strong Buy
Thanks for the heads up. This is just what I've wanted...a good entry for the EX run. Looks like Nov52.50's for 1.10-1.20 are the menu Specials tomorrow morning!! I take mine black..See you there...;-)
BTW, I just searched out the last 5 spo's for EPD..sometimes management placed them 10 days B4 EX...grrr. Anyways, the average is 7 days of weakness post spo, sometimes trailing off a whole dollar from the offer, before recovery. That places us at Friday, Oct 5th, before our waiter clears the table, so don't eat too fast, they might have good dessert...;-)