" And if I hold a stock that pays a 15% yield long enough I'm guaranteed to make money."
If I roll the puts for the same amount of time I am also guaranteed to make money. You don't get that the the maximum loss if the stock falls to zero is just the strike price. So if I collect more than the strike price before that happens, just like you I am guaranteed to make money. Exactly the same argument you are making for the stock applies equally to the puts.
You have repeatedly said you know nothing about options and there are other people on these boards (one in this same thread) following the same strategy as me. Nobody is going to force you to make money if you don't want to.
To be clear, it's still a bad 'investment' however your 'article' (if there is one) is rubbish.
completely bogus argument. First, I don't believe they have said anything about production being significantly decreased, and if it had then it would mean the trust would run longer and not terminate in 5 quarters. Likely you made all this up and there is no article.
If that happened the trust would run for longer. As the trust is still saying mid 2015 as the termination, it's safe to assume the production will be fairly steady right up till termination and the distribution should be too (subject to variations due to oil and gas prices). Don't know what article you read, but I say it's wrong.
That was options expiration. Likely reversed on Monday morning.
Similar thing happens on different stocks every month on options expiration Friday. Usually the move is reversed at the open on Monday.
Mine were at etrade and I got the PXD now. Assume you also have. The conversion should be complete by now. As for what now, originally I planned to sell my PSE after the final distribution. But by then the price has dropped from over $50 to the low $40s. So I changed my plan. I am keeping the PXD for the time being and selling front month calls every month which looks like it will pay significantly more than the PSE distributions. I sold December PSE $45 calls when I decided on this. They just expired and on Monday I will be selling Jan or Feb PXD calls. If the Feb calls pay close to double the Jan calls I will sell Feb, otherwise Jan (haven't decided strike yet but I may try to maximize income by selling the lowest strike above the current price - if it's going to be called, I always have the option to roll forward and up if I want). This will give me good income on my PXD and I have no problem about being called if it comes to that as it was never my intention t keep the PXD long term, this is just to maximize what I get out of it before selling it. Also the tax implications are already in the past with the merger so there's no major tax implication to getting called. The main risk is that the price of PXD crashes, and they may well report poor Q4 due to weather related issues, but that should be a temporary setback if it is one.
It's beaten up but who can say there's no more downside. Don't try and predict what the unit price will do, concentrate on estimating whether the distributions will repay your investment with a good margin of profit.
"For me it's been more profitable writing calls vs. buying them."
For me selling puts has been a huge moneymaker (I never buy any options and rarely sell calls but I sell puts in a big way). However I would not advocate any options trading for people like the poster here who is going to rely on the income to survive. He needs to be looking at far more conservative investments if not to face the prospect of panhandling on streeet corners when things don't work out.
It's lesson learned for SD as well in that they probably won't be able to market any more of these trusts after the 3 they already put out. Maybe that's why they brought the 3 out so close together before they had a chance to go bad.
Yes, I'm still long all of them and been doing some buying at the lows. Not backing up any trucks though. Factoring in the distributions received I am down but not hugely as the distributions received offset a lot of the price decline based on my purchase prices.
If they can lock in hedges at $5 they will be able to get positive cash flow from a lot of fields that would be marginal at $4. So these prices will indeed allow then to hedge more and produce more in 2014. Several O&G producers have even said so explicitly in their conference calls.
MTR (a trust not an MLP) one year didn't release the tax booklet till September. But those are exceptions. Most get it out by March and a very few in early April.
Don't argue with Ruby about MLP taxation. I only have encountered two posters who know it as thoroughly as he/she does. One is jrad52 and the other was an investorvillage poster with handle rock_n_rent.
Anyway, Ruby's correction doesn't alter the message I was conveying which is that if you've held your MLP for a while there may be significant tax implication to selling.
Your statement "When you sell an MLP you owe capital gains taxes on the difference between what you bought and sold it for. You also owe ordinary income taxes on the difference between the adjusted cost basis and the price at which you purchased the MLP." is often quoted as a general guideline (and I believe that may be stated on the NAPTP site) but it rather a gross simplification of the actual rules. When I have had MLP sales, I have been able to match the adjusted basis exactly to my record of distributions and income and loss from boxes 1-11 over the years, however I have never been able to match the sales schedule reported ordinary gain amount to what I expect. Sometimes it is more, sometimes less than I expect. So, as I say, your statement is an approximation which is sometimes close but sometimes not. Either way, Ruby knows more about the subject than either of us.
The "shenanigans" you are referring to are not recent. It was a year or more ago, I think.
And there is no way for the US to export LNG to Ukraine or Georgia, or anywhere else for that matter. The US is a few years away from having ANY export capability in the lower 48 states. I've explained to you a few times but there is ZERO LNG exports from the lower 48 states (and only a negligible amount from Alaska from a facility which is going to be shut down and is only supplied from a local field and not connected to the pipeline network). So forget LNG is any discussion here as it will not be happening for a few years.
"going much lower"
seems like you've been repeating that for 2 or 3 years, yet you still claim to be long and to follow it microscopically, posting every day even when there's no news. There's plenty of MLPs and stocks doing well, so why are you focussed so intently on this one? It's really strange.
didn't seem to do anything. I voted no but my units converted to PXD shares right on schedule. I'm now selling calls against my PXD position every month and will get higher income from doing so than I ever got in PSE distributions. At some point I will end up getting called but that's fine as it will be at a price significantly higher than the price at time of the merger. The only risk is of PXD price crashing but that's a risk whatever I put the funds into. I don't generally sell calls against my MLPs (tax risk if called) but since I don't intend to keep PXD long term anyway and also the tax impact already happened with the merger, there's no reason not to. Selling front month calls a bit above the current PXD price seems to give decent premiums (especially compared to distributions on the equivalent PSE position) and you get to repeat it every month. I already sold PSE December calls a month back. They just expired and I'll sell PXD calls on Monday (probably January but I'll compare versus the February premiums as Feb options will be listed on Monday). If I can get double the premium for Feb versus Jan then I'd just sell the Feb.