I like the probability of this trade, especially since KMP is reaching its high. I'll be joining you on this and FSC with small bites.
Instead of shorting the KMP shares, why not buying puts? When you short shares of mlp's do you have to deal with the k8's the same way as when you are long the shares?
I originally laid out a Put strategy. The reason I switched to the shares was because of the higher BE with shares. You can get a Feb90Call for .29 right now. Shorting at 88.65 gives a 88.36 BE on the low end and a max loss of 1.64, at PPS 90.00 or greater by FebOPEX. If you can show me a better BE and a lower max loss I will take it.
I don't know nor care about the K1's. I just care about wringing the most money out of this trade....;-)