SPO should not have come as a surprise (I'm only a bit surprised that it didn't come sooner) . . . for those that like to trade portions of their high-yield mlp holdings, the timing of the SPO at least allowed them to sell some shares at $24+!! . . . but now that "we're here", who's adding to their position at current levels?? Just curious what others' strategy may be . . .
Already have a pretty decent position but added another 500 shares at $22.24 for a 9.98% yield at the $2.20 distribution level, plus bought 20 contracts for the Jan 2015 20 call option at $2.45...(Break-even at $22.45)expecting price to recover to $23.25-23.50 by then for a projected gain on the option of 33-43%.
I plan to buy on dips below $21.90. Someone ran the stock price up above $24.00 to get ready for the stock price; I've seen this too often; it is textbook manipulation to get the offering at a higher price and get some longs trapped. The price should dip to about $21.50 range in the next 2-3 weeks. I'll be a buyer when it dips. GLTY.
hey there "jj" . . . small world! . . . I just left a response to one of your posts on the WMC board!!
We're not that far off from one another on this one . . . I actually put a buy order in today pre-market equivalent to what I was fortunate enough to sell at $24.50 just a week or so ago at just-south-of-$22. We may very well see the $21.50 range, though I doubt we'll see it over the next 2-3 weeks, as we're now in that typical 4-week window prior to ex-date that, if anything, we would normally see the share price "melt" up (which, in this case, seeing as how the SPO is just weeks ahead of the ex-date, I doubt we'll see the "normal" share price appreciation). If I'm unable to pick off additional shares at my preferred level prior to ex-date, I'll hope to do so at $21-5-$21.70 post-ex.