Yeah, once you're in it, doesn't really matter I suppose. I used my lower retirement tax bracket and the gap to switch out of some of my LINE merely to get more cash flow, but now . . . where do I go? Even if the gap tightened, would it matter to me? Not really. And the calls and trading positions I hold were cheaper than LINE's by an appropriate amount, so long as they go up in tandem, no biggie. I guess if you believe RJ's premium theory you could play it. I don't.
Anyone can see it if both companies are identical, one give you a nicer yield than other, the choice is very clear. Originally I have my money in both LNCO & LINN, because of the spread differential, I now my ratio have changed to 11:2 in favor of LNCO. It also gave me a nice surprise yesterday when LNCO jumped 81 cents while LINE only up 14 cents. They now going back to the old spread of $1. Who knows? LNCO may even obtain parity in the future, that is another $1 upside potential. I actually bought 620 shares more on Thursday after the earning came out. I was surprised that the stock price did not go up, I thought I might have misinterpreted the earning report, they did well & set up for better things to come. LNCO actually went down to $28.80 before they slowly regained back a little.
Why investors are so skeptical on LNCO for so long? I am pleasantly surprise that finally some investors are will to buy LNCO yesterday after ex-dividend day.