05-18-2014, 05:38 PM
(05-18-2014, 08:41 AM)hendi_alex Wrote: I recently doubled my modest KMI position. Is about 4% weighting, at least 2/3 intended as a long term growth and income position.
Jcirafic, how much did you net per share on the put. Seems like going long now would give an effective price of near or under $33. Why not just go long or sell some $32.50 puts. If you are bold enough to go out to October, a month when MLPs are usually depressed, your effective buy price could be near $31, and even if not assigned, you get paid over $1.10 per share for the contract.
Hi Hendi_Alex,
here is the quote from my brokerage history;
05/19/2014 EXPIRED as of 05/16/2014
-KMI
140517
P30 PUT (KMI) KINDER MORGAN INC MAY 17 14 $30 (100 SHS)
Cash Contracts: +2.000
I made about $50 on this and I almost always only do puts about 1 month out. If I can make 1% on my money in one month I am happy. More than one month gets me worried because I would not have time to react to a full fledge market pullback without buying back the put contract and of course losing money. But maybe you are right about KMI out to October because it would be a buy at $31. I will think about this. Another thing for me is that I already have a big position (for me) in KMP and don't want to bet that big on Kinder even though I like the comapny and the business.