Looks like ETP has bottomed and was up on Friday on a down day. Seems like it's getting ready to make its dividend run.
I think the high before exdiv will be around $50, any thoughts?
GL to All!
MWE is an MLP operating in the "mid-stream" space. MWE has made some excellent strategic moves this year, and appears to be positioning itself nicely for the future. When someone on this board (thanks) mentioned that MWE had declared an SPO after market on 3/12, I took a closer look. MTGE's chart history showed a strong upward momentum towards its distribution. My thoughts were that an SPO "recovery" coupled with the historic dividend run (next X-d. is approximately 4/28) should make MWE an excellent candidate for an options play. Moreover, MWE was hitting its 52 week high on the day that it declared an SPO, so support was strong.
In light of the foregoing, on 3/13, I chose to open a position in May 57.50s at 3.00, for a net position of 60.50. In reviewing MWE's run to distribution over the last 4 quarters, I noted that from yesterday's proxy (X-d. minus 39 days) to the pre-X-d. high, MWE has gained 4.78, 4.24, 5.08, and 3.89 (looking backwards, respectively), for a range of (yesterday's open was 59.49) 63.38 to 64.57, with an average high of 63.38.
Doc, reit_freak and I both pointed out last week that MWE had done an spo. If my posting helps you make some money, it will still pale in comparison to the amount of help I have received from you and others who post on this board.
I decided to buy this basket of MLP call options last week:
PAA Aug 82.50
PAA May 82.50
MWE Aug 62.50
ETP June 47.50
KMI June 37.50
KMP June 87.50
KMP June 90
EPD June 52.50
So far KMP, ETP, MWE and EPD are doing very nicely. I actually bought the PAA Aug. 82.50 right after the SPO a couple of weeks ago. Should have waited on that one, but I still expect it to do okay.
I am buying MWE on the heads up from a person, here, who reco'd it last week. Thank you (can't remember who you are,..sorry).
I am waiting to here your reco., Jim. Hey, flying today (late)to Newport Beach. Whirlwind trip with wife and daughter. Will contact you when I get there, tomorrow.
Just reviewed your play. With April OPEX on 4/20, and KMP's X-d. around 4/28, your play looks like money in the bank to me. .94/1.56 gives a nice 60% ROI. You're going to like this trade.
BTW, I've been crunching numbers this morning for another very promising MLP trade. I'll pass on my finding when I'm finished compiling the data.
That history is pretty compelling. I picked up more Apr82.50/85Call spreads for 1.56 debit(BE 84.06 by Apr OPEX) today. Hard to imagine less than 85 by that time, which is .94/contract profit.
Here's some hope for all KMP Longs.....
Thanks for the excellent data.
I also noticed that KMP is usually around $90 at exdiv so I felt comfortable buying some OTM Calls. Picked up a bunch of the May $33 Calls at between .50 and .58 today. Looking for a triple bagger!