Judging that SUN holders will be liquidating their ETP units to be acquired this Friday, maybe its a good idea to ditch Nov. Calls until the smoke clears or replace it with a CPNO or other more favorable MLP? what do some on this board think?
My original position was a spread where I sold the Oct 45 calls and bought the November 42.50's for an average cost basis of about $.98.
Earlier, I rolled the Nov contracts down to 40's for a Oct 45/Nov 40 spread with a net 2.31 basis.
Today. I rolled the Oct 45's down to Oct 42.50's for a net $.30 credit, making my average cost basis $2.01 in the new spread.
My BE went from 43.48 (42.50+.98) to 42.31 (40.00+2.31) to 42.01 (40 + 2.01).
I'm okay if we cross back above 42.50 at Oct OPEX and I have to sell for something close to a net $2.50. If we cross below 40, I might roll down to a lower spread while bringing the November leg into October if I can find something that's still profitable. But I will probably exit early for a loss or hang on & pray at that point. Oh well, live & learn. Won't be my first loss, or my last.
My EPD Nov 52.50's will most likely make enough for me to come out ahead on the month.
I'm looking at Kmp for an alternate,originally it was one of doc's choices.It looks like it had pretty consistent divi runs last year.I have a little ETP but it's looking risky near term so I might put a bid into KMP this morning.
FWIW, I just bought some PAA Nov42.50Calls @ 3.20(post split). I had spreads on some of my ETP positions, so am leaving the Long Put legs in place to maybe ride the undertow....;-(
KMP has worked for many...I just don't count myself in their number, so I am healed. Now KMP can continue its normal climb....
I swallowed hard and continued buying ETP Nov 40s for 2.15 yesterday and 1.90 this morning bringing my B/E down to 2.46. If the prices I see in the AH trading hold, tommorrow I should be close to B/E
Good luck to all, whatever course you followed.
I think it is going to be painful over the next 4-5 trading days. The Sun deal is unfortunate(50% payout in ETP units). I might lessen my exposure and wait for a bottom next week. I think we will still see movement up, towards EX, at the end of the month, but probably from a new bottom. Right after my full investment....grrrr....
I didn't like ETP back when it was brought up a couple days ago, & I still don't like it. (personally) I like CPNO, but I won't chase gains.
I am waiting for MSFT to give me a reason to buy into it. I bought into EPD, but again it is late and I don't suggest anyone buy into a run.
Problem with CPNO is your basically gambling on the dividend at this point. The market is expecting a certain level of return. If it doesn't meet expectations it could fall to back when I called a buy on it. Too risky. I know a few people (I think xxavatarxx) bought in, and they are enjoying a good gain right now. In this market I would suggest either pricing puts or sell the calls before the dividend.
Just my opinion of course. Good luck to everyone.