Well we now we have date on which institutions sold after the distribution cut. Would love your comments on first sight:
- Now is clear the heavy selling after the cut. After 6 large holders decided to get out FAST.
- WE knew three of them (Kayne, Barclays, Tortoise) , we missed the largest -New Mountain- plus Tahithromos and Blackstone. None of them is dividend fund
- The forced selling of the first three represented 4M shares
- There were no significant buyers at least until June 30, probably waiting the selling to stabilize
- Only New Mountain has (had?) still a large participation: 2,446,303 shares.
Top 10 sellers June 09
New Mountain -2,639,019 -51.89%
Kayne Anderson -2,436,036 -100%
Tahithromos -1,164,713 -100%
Blackstone Group -948,141 -100%
Tortoise Capital -865,322 -83.25%
Barclays Plc -713,882 -99.51%
Goldman Sachs -399,245 -73.76%
Renaissance -219,100 -100%
Burnham AM -194,539 -100%
Legg Mason -185,000 -100%
I have exited most of them this last week locking up profits, I am still in my aapl 145/155 will let it expire, bwld 30/40 will try to get out to lock profit put it on at 5.25 will get out if I can get 8.30 tomorrow depending on what market lookds like tomorrow will probably get out of WCG spread at small loss others already out if I do the above I will have locked a profit of 24% for Aug not the 42% i was shooting for but still respectable, not liking action of a few of my stocks this week, I have put on a few for oct already but waiting for dust to settle on more. OCT so far aapl 150/160 at 7.30 APA 80/85 3.60 looking at WCG 20/22.5 Msft 21/24 frx and nrg waiting for market to settle will look at cop 41/44 again and BNI 75/80
Sorry for just now responding. Put selling in my opinion is a good way to generate some cash each month and get into a stock at a lower price than it is now if they happen to get put to you.
I sell only 1 month out each month. You generate much more income doing it that way plus you can kind of gauge what the stock is doing. I usually pick the puts that are $1 to $2 LESS than the current price of the security. The whole purpose of put selling is to generate income, not get them put to you....but in the event the price of the current stock drops $2 you need to want to own the stock because they will get put to you if it drops below your strike price...but your breakeven will be the strike price minus your premium you got for selling them. So if a stock is at $12 now and you sell the Sept $11 and get $1 per share premium...the stock would have to fall below $10 for you to lose money...ie - you are put the shares and must buy them at $11..minus the $1 you earned for selling them = $10 entry point for you. Plus, if you really want to own the stock, getting in at $10 may not be that bad if there is a sell off.
Currently I have 20 contracts of Sept SCO $15 that I sold for 95 cents. They expire in 16 days and there is no way in my opinion the stock is going to drop to $15 at this point...so I get to keep the $2,000 premium on them...next month, I'll repeat, but since SCO has moved up some, I may sell puts at $16...just have to wait and see.
I'm watching UNG like a hawk...the put premium is rather low..so if it keeps dropping I may get a little risky and sell the Sept $10 puts on it.
as soon as I get some cash in an options account I think i'm going to play with selling some short term PUTS.
I tend to buck the trend by focusing on 6-9 month expirations since I feel like I can pick up a little extra margin of safety with a larger PUT premium.
early today when market was up I exited my call spreads on MSFT,cop, and
AET for 30% profit for aug so far, decided to nail some down rather than wait, did enter some OCT call spreads on AAPL150/160 at 7.75 and WCG 22.5/25 at 1.65 good luck on those puts ufpeterson
plan, this is totally a subjective feeling on my part, but have you noticed the change in activity on this board and the less pumping both ways, I feel this has definitely bottomed now, whether it goes up soon from here is debatable, but the bottom has arrived and this board activity is definitely a sign of that IMO. We are almost back to calm days prior to fall apart from dividend cut.
My guess is that most who want out are out by now, and value investors will start picking this up over the next 12 months. Who knows what happens, but the valuation is certainly here.
I'd not be upset at another trip below $3 though, because if I could buy enough of this in my taxable portfolio I might be able to finance and service the debt solely based on EROC income (a long shot, but who knows?)
It is so much more quite. These boards are great contrarian indicators. BTW, BBEP looks ready to run. Its board had zero activity over weeks and all of the sudden this surge of non-adding posts. The same happened with GSL before the recent runnup.
Well now AIG, goldman sachs etc sold their shares. Now now now do you really trust those guys. Ahem they got bailed out by the gov big time. Shows how competent they are.
BTW goldman sachs got world fame from their front running scam and can go under anytime gov wishes to pursue charges against them.
They admitted it that they themselves are scum. I'd be happy to invest against them as long as this dont go under. :P
BTW why did this go down with oil/gas is going up. Makes no sense, maybe gas going down is good for this stock hmmm.
BBEP went up though strange, arg why cant bbep go down a bit I wanna buy some at 7 or so dollars. Better take this dip and buy more.
But maybe it will go down to 2.80 again. :p
Hopefully this is a situation where the little guys are smarter than the "smart" money, which has been tragically stupid for a couple years. Anyway, I picked up another $12.5K today after selling a Canadian thing (HighPine) that got bought out.