exercised the sept calls, this is bad news since as soon I buy the stock tanks,
interestedly the open interest barley went down from Tues to wed I would think that more holders would exercise to capture the distribution. the pps will drop after the ex date but the probability of it going below 20 is small IMHO
attempted to close out my sept calls and wanted .05-.10 premium, left the order set until bid ask was 21.40-21.42 ( my order was to sell @ 1.40 ) when I saw the bid ask up there I canceled the sell order.I may reenter the order higher or wait till monday and exercise early to get the dist.
most of the calls on qre are not really priced right as calls but are "insurance" on the deal falling thru, I own some sept 20 calls and may exercise early to get the distibution the bid is below parity and I was expecting to exercise any way.
given line's need for cash I doubt that line is buying any units at these prices I they would drop significantly then maybe but right now I can't see them burning their cash at these levels
I am betting on the deal going thru, today sold qre nov 20 puts for .75 more than the dist for 3 months and less capital outlay. (but won't gain more than .75) however I own plenty of qre for that.
perhaps some was trading the options on lnco based on the planed asset auction now that is announced. I have decided to go along with the big option player. today I sold 20 lnco 30 sept puts worst case I get 2000 more shares of lnco with almost 10% yield and can sell some longer calls to almost double the dist yield, other wise pocket the .50
2nd day of high volume today at 2pm, sept 31 calls had 5323 contracts traded. and I can't see any offsetting option trades for them to hedge the bet. so it appears that someone really likes lnco over 31.40 by sept 20
until we have a vote on the deal we are a slave to BBEP's sh price Qre will not raise the div, nor make any acquisitions we can still benefit from the arbitrage differential and, most of the time, QRE has a higher yield.
more like, one very big option trader expects LNCO to be 31.40 by Sept. but why sept? and not oct? and why just 31 strikes and not others?
the sept 31 calls have 6425 contracts trading today. makes you wonder what is up? I can't tell if the options were buys or sells but there is still quite a bit of premium in the calls (bid .30 ask .40) so I would assume the large volume was buys.
Thanks for all of your responses, I too have the nat shares in an e-trade account but under transaction descriptions it refers to the 15.6 a normal cash distribuition and not an "in lieu of " it may sort it self out by tomorrow but I was just posting as some of you seem to have received both distributions. the 15.6 amount threw me for a loop if it was 16 or 12 then I would just patiently wit for e-trade to catch up with the postings.
My one ira account only has 100 shares of nat today they posted 15.60 to the account!! this is quite a bit below what I was expecting I was expecting .12 + .16 X 100 If they don't correct it I will vote with my feet on the dividend treatment!!
I wasn't referring to UBTI. last year I sold some line, when tax time comes the k1 shows you quite a bit of regular income to report on 1040 and form 4797. this is money in a taxable account and the gains basically are all the deferred distributions from LINE in the past.
I have heard that 2014 linco div would NOT be taxable but in any case regular div ane not taxed that high to us peons. and when we sell line then we are hit with "regular income" gains.
read the conference call they also have atm's to sell shares based on managements assessment of the share price(s)
given the cash flow needs of linn (and almost every other mlp) I don't expect much management buying other than to deter an other bear raid.
They defiantly are not on all cylinders at this time. but it would seem they are making progress, a good dist coverage ratio ( 1:1.10) and some more news on the sale of the properties would go a long way to righting the ship and maybe lnco could hit 35
BBEP is buying out QRE and I think LRE is getting some spillover love. but QRE and LRE are quite a bit different as to general partner and I think qre was getting rid of their IDR's and some what distancing them selves from the general partner.
I own both qre and bbep and right now I am thinking on sell bbep and buying qre $ for $ and hope the deal goes thru. the arb value is about 7% from 20.64 to 21.94 plus the 9% dist so if they can close in 6 months this should be a sweet deal.