CVR Refining (CVRR) today announced a first quarter distribution of $1.56 with an ex date of 5/8. The anticipated distribution was only in the range of $1.10 to $1.35. Current pps is approx. $31.
The initial annual distribution for 2013 was expected to be $4.72. In March that was revised upwards to $5.50-$6.50. Earnings call is this morning. Based upon the upward surprise in the declared distribution for the first quarter it wouldn't be surprising if the annual distribution ends up being at the top or above the March range.
I Sold all of my CVRR calls today. There is one more day before ex, but trying to milk every last dollar out of a trade does not normally end well for me. I mad a 61% profit on my June $35 calls, and a 64% profit on my June $30 calls. I also hold 200 shares of the stock that I plan to keep for the foreseeable future.
I did also, Russ. A forth yesterday at 3.30, a forth at 3.60, and the rest today at 4.50. Just like toe nail pulling with UAN, I couldn't sell any at the intrinsic value, only 3-4 cents over. It took 48 sells to get rid of 60 options lol. I wish someone had slapped me upside the head with the real play, though. We made real money on CVRR and UAN but missed the big play ( at least I did) on the people who were getting all that money.... CVI. It was at 48 EOD before earnings - now 56.50. That should have easy to see. Now wait on NTI.
CVRR is up over 5% today. With earnings out now, they can activate the S-1 previously filed on 3/29 to sell the shares. The proceeds are not going to the company but the original shareholder (so it is like NTI).
Some like to use the run-up into the ex as the time to sell shares, some don't. We don't have a history with CVRR so it is just a guess.
This is playing out like I anticipated and I'll be out before the close today and then return for the offering.
Good call on this. Regretfully I held off purchasing this morning even when I had the "second chance" during this morning's price-lull after the news hit. Had been considering buying yesterday.
Was scratching my head re: their previous statement about releasing earnings after market close yesterday, and then nothing but silence until after the market opened today. With such a fast-moving market I also figured if the stock hadn't started to pop in the minutes following the release this morning, maybe it wouldn't happen. Guess the market isn't always so fast after all.
Anyways, as always it's appreciated that you call out these potential trades ahead of time (saw your comments yesterday on another forum).