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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: Bocor who wrote (5859)	12/31/2013 1:49:50 PM
From: Jim P.	Read Replies (1) \| Respond to of 5891

ATLS the parent company has not lowered it's distribution forecast for 2014. Most of this increase has to come from ARP. I think they will announce a 60 to 63 cent distribution for the 4th Q and the year will be between $2.50 and $2.70. Even getting stuck with the stock is not a losing proposition if it drops under $20 you can kick the yield up by selling calls. Unless there is a company specific interruption they are well hedged and I think the risk level is very very good. Read the 3rd Q conference call on seekingalpha and you may find a lot more confidence in your position. That and the hedges are better going forward. One very small head wind is that options used for hedges decline in value when prices are increasing as they settle at a given price while prices received are often daily. So when prices are in a steady uptrend the current month cash flows get hurt a little while the opposite happens in a declining market. The run up in natural gas may have effected the last quarter hedge settlements. I do not expect it to be material but do not know how all of the production is priced. Jim