I am opening a Buy/Write on Genesis Energy (GEL).

music selection:  “One Week” — Barenaked Ladies

weigh-in:  219.2 +0.8 (doh!)

Genesis Energy is a midstream oil and gas MLP that has remained strong through the oil downturn.  It has increased its distribution every single quarter going back to 2005.  It yields 7% or so at today’s price.  I expect to do well here and am excited that options are offered allowing me to juice returns with covered calls while I collect a growing dividend payment.

I bought shares today at 37.64.  I also sold GEL160715C00040000 against the position for 58 cents a share.  The trade will be in force for 33 days and yields 17.04% against my cost basis in shares.  The trade enjoys 1.54% downside protection.  Next dividend should go ex in late July so I shouldn’t get called away early by those looking to cash the distribution.  This position replaces AT&T which was called away after a late rally on Friday.

Devour your prey raptors!

Buy Genesis Energy (GEL) – Write Calls

Never miss another opportunity to devour prey!

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