looks like investors are moving back to US secular theme ( on US oil & gas growth/production + stable yields) , given issues with europe and global slowdown.
reminds me of last 2 yrs when MLPs had bull run,
I did sell the 57.50 calls this month, didn't think it have a run like this. Now I have to decide to let it go or buy the calls back and a pretty high premium. Selling the calls wasn't the best decision.
Is this parabolic move make anyone nervous? I have been in since buying Duncan, June 2009 at 16.30 and sold some over 4years, but still have big gain. Wondering if I am getting too greedy! What a wonderful stock.
Not sure if we are talking about the same company. EPD was $55.50 in July. Up about 7% since then. MLPs in general are all up as the likelihood of interest rates rising significantly until 2015 has become apparent. Investors are looking for yield. Where else can you get a steadily increasing payout that is about 200bps above junk bonds and if you hold forever mostly tax free.
Many other MLPs making new highs and becoming overbought on an RSI basis. Usually that is when they do an offering, although EPD just did one a few weeks back. I think this could be some window-dressing going into the end of the quarter. Previously, I've tried to hedge by selling covered calls, but I once got called out of an MLP and as a result, had to pay a tax on my hefty gain (the stock then sold off after I got called out -- so I was right but off on the timing).