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Sandridge Mississippian Trust II Message Board

  • craigcrrd craigcrrd Feb 1, 2013 12:34 PM Flag

    Hey the $15 june calls @ 1.35 -1.40would be a great buy ??

    moves back up to $17 making$$ or you own it at $16.40....

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    • 27 vol is pretty cheap, but don't forget that the distributions will work against the value of your call. Maybe buy the Jun 15 and sell the 17.5 against it you might get that done for around $1

      • 1 Reply to dreverts
      • Why not sell the AUG 17.50 PUTs at 3.20? If exercised your effective cost would be 14.30. If the current dividend of .532527 holds for all 4 quarters that would mean a 15% return.

        Currently the market is treating SDR as if all the wells suddenly became dry, no more oil, all wells are worthless. Of course that is not the case. Has anyone noticed that in the past two weeks the price of oil has gone from the low 80s to above 95? What effect will that have on SDR's dividend? Unless we are in OZ as the price of oil goes up so will the payout of SDR.

        If today's price action isn't a buying opportunity then such does not exist no matter what.

        Sentiment: Buy

1.51+0.01(+0.67%)Oct 21 4:02 PMEDT