Income Investing and Beyond
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Msg  902 of 4392  at  4/16/2012 11:47:42 AM  by

hendi_alex


BBEP, oversold?

 BBEP has been under near constant pressure since hitting a short term high of $19.70 on March 14.  The shares are currently trading at under $17.  The dividend of around 45 cents should be declares in less than two weeks, and should give the shares a bounce.
 
I'm out of cash, but if get some while the share price is under $17, will consider the following play.  Buy at under $17.  Sell September $17.50 calls on any share price bounce over $17.50.  A few months ago, I added shares at a similar level and was able to sell $17.50 calls for $1.25.  With 90 cents dividends(10.6% yield)  per six months plus about $1.25 calls per six months , BBEP becomes an attractive investment for me, up to about a 5% weighting.


 
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Recs: 2  |  Views: 121
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Replies
Msg # Subject Author Recs Date Posted
903 Re: BBEP, oversold? chuttoo99 1 4/16/2012 12:18:23 PM
912 Re: BBEP, oversold? joemony 4/16/2012 10:52:23 PM


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