Many of the MLPs are doing offerings at these levels. EPD did one the other day. Many of these are over 70 on the RSI. Might be time to sell some out of the money calls. I did that on EPD 2 days before the offering announcement. Covered on the spo day. Had to go out several months to get some decent premium.
Mark,Bbep,unlike epd making the offering before the ex.a 2x whammy and a bit dirty pool in my opinion.just starting to turn a nice profit on this one,now back to the divy or dis only.i want to reset the cost basis on one or two this year.i,m looking at MWE which is next in line.q,will 60 or offering come 1st...opinion,tia,ed
Ed,MWE just raised a billion in debt in January, but their last stock offering was in Nov. They are now past the ex-div date and the RSI on the stock is over 70. With the market high, I would say the chances are pretty high that one is coming. They did get a contribution from their Utica joint venture partner, but it looks like that project is going to be huge. I would think they wouldn't wait much longer. The larger these MLPs become, the smaller the discount on subsequent spo's.
Selling covered calls didn't quite work out for me on NGLS which ended up getting called away from me before expiration, but the stock still has not recovered the price I got called out at. But now I have to deal with the tax ramifications. Good luck.