My previous covered call expired out of the money.  Covered calls on DPM expired in the money and I’m deploying those funds to written puts in AMLP.

music selection:  “Man In The Box” — Alice In Chains

AMLP is a high yielding ETF in the MLP space.  I like the yield and diversification in one package.  It also has options allowing for a bonus yield kicker.  On Monday I sold AMLP160715C00013000 for a dime a share.  That trade yields 3.78% additional annual yield over the dividend distribution over 89 days.  It is somewhat out of the money allowing for capital gains if it expires in the money.

I also sold AMLP160715P00010000 for 0.30 a share.  That trade yields 12.30% annualized over 89 days.  It also enjoys 13% downside protection.  Although I’d be happy to own shares at 10 dollars each.  Ordinarily, I like expiries that are 35 to 50 days out.  In this case, there was no liquidity to found at near term expiries so I went further out to get filled.

Devour your prey raptors!

Strangle Alerian MLP (AMLP)

Never miss another opportunity to devour prey!

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