Forgive me to the poster who brought UAN to our attention, last week. I cannot remember who youse was...;-)
I shorted the Jan30Puts for 4.00 this AM and am looking to add on weakness. UAN isn't very old, but on each of its dividend runs(6), it has averaged about 2.00+ run from a month out to EX date, and 1.00+ run to the pre-EX OPEX. So I like the Jan30Puts for 4.00+ as that places you @ Par to the PPS. Any movement up, from here to Jan 18th is money.
As always, I warn that short options expose you to risk. In this case, the risk is owning the shares @ apprx 26.00
I was assigned(Put) the shares on half of my position this AM. Interesting. I still think it has legs into OPEX and following EX. OPEX especially, as announcement of the reduced distribution will probably follow OPEX.
The UAN February $25 Calls are going for 1.30 right now, if UAN goes up $1 up to $27...I can sell them for 2.00 . I might buy a dozen of these, just to test the waters.
Sentiment: Strong Buy
Yes, I am testing also. I certainly do not recommend betting the farm. I just found them to be the closest to par with the PPS for my short Puts, and I checked most of the MLP's (consistent runners) , BDC's, mReits and see UAN as the most promising. If I am wrong, I am wrong....;-) Follow at your own risk...
Hey there...not to argue, but where did you see that? I looked at the mb and it is really weakly populated...only a few post over the last weeks/months. I didn't find any posts suggesting what you said, but I didn't look very hard...hence, my question.
Happy New Year! Wishing you the best of health, wealth and happiness!
I like the odds with UAN and joined you with a small position. I was looking at WMC, AGNC, MTGE and PSEC to short puts with Jan expiration but couldn't find good deals, looks like they took off and I'm scared to chase them.
Keep us posted if you come up with any other trading ideas for January.
Good luck and thank you,