On Monday I opened  strangle on DCP Midstream Partners LP (DPM).

music selection:  “I Missed Again” — Phil Collins

Earlier, I was assigned shares on  DPM puts.  I now own 300 shares which I have written successful covered calls against.  I have gone back to write another 3 puts to complement a new set of 3 covered calls.

DPM151218P00022500 was sold for 0.40 a contract.  DPM151218C00030000 was sold for 0.10 a contract.  Total premiums are thus fifty cents.  Against a cost basis of 30, this trade open for 26 days, yields and annualized 23.40%.  Only one of the contracts can be in the money at expiry so at least half of the trade will be a winner.  My biggest ‘downside’ is to own more shares of this high yielding midstream company at a great price.  I call that a sure bet.

Devour your prey raptors!

Strangle DCP Midstream Partners LP (DPM)

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One thought on “Strangle DCP Midstream Partners LP (DPM)

  • November 24, 2015 at 4:33 pm

    Thanks for putting a tab at the top called “Open Positions”. It’s fun to play along at home!


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