SDLP announced today it is cutting its quarterly distribution from 25 cents to 10 cents.

music selection: “Everlong” — Foo Fighters

Previously, on 18JUL2016 I sold SDLP160819P00005000 for 6 cents a share.  That trade will yield 13.27% annualized.  The distribution cut news caused the stock to fall a hair over 30% today and I am currently in the money.  I expect to get assigned and have a cost basis of five dollars.  With the distribution at 40 cents a year, my yield on cost will be 8%.  I’m happy with that yield as I can write covered calls for bonus yield.  Seadrill Partners is a strong company and its distribution will eventually be back.  That is the power of writing puts on companies you’d like to own at a great price.

Devour your prey raptors!

Update Seadrill Partners LLC (SDLP)

Never miss another opportunity to devour prey!

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