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To: robert b furman who wrote (43435)	6/30/2020 9:48:03 AM
From: E_K_S	2 Recommendations Recommended By shridog tom2025 Respond to of 52048

Re: Hi EKS, There was concern w/ pipeline revenues that the CHK BK may/could disrupt their cash flows. Contracts may be redone/ KMI almost 18 months ago was moving to fixed fee type contracts rather than commodity priced. In the option calculator there is a function in Street Smart Edge to calculate returns when writing covered calls showing total returns (w/ dividend) % Target ROI. Also there are on-line calculators that do the same thing. The biggest component now is the dividend as the cost of capital is so low w/ 10 year Treasury rate @ 0.65%. My strategy is as follows (1) keep buying to bring avg cost lower, (2) look to write some covered calls to capture dividend across time and price but on only at most 1/3 of position. and (3) will provide some small downside hedge for portfolio. Since in my top 10 positions I have high dividend yield payers; KMI, WMB, BGS, T & CTL plan is to look at total return on structuring some covered calls w/ dividend capture (at least 6 months out and maybe 1 year). That same option calculator on the Street Smart Edge provides you your downside protection percentage too. Prices for KMI & WMB at the lower end, so maybe time to do a small add and run that calculation on $15 Calls and/or $17 Calls. Looks like $15 Jan 2021 Calls provide 8.83% downside protection w/ Target ROI 9.61%. The key is Buy some low cost shares, then let stock run a bit higher (above the Call strike price then put on the covered call out at least 6 months and up to one year. EKS

To: robert b furman who wrote (43435)	7/1/2020 8:32:50 AM
From: E_K_S	2 Recommendations Recommended By maverick61 tom2025 Read Replies (1) \| Respond to of 52048

Re: Hi EKS, Bought some more KMI at $14.61/share (in the AM when it sold off) and got some covered Calls sold at/near the close. Stock rallied on end of the quarter selling over 3%. Plan is to sell covered calls on at least 30% of my KMI position. Today I got 15% covered calls sold at two different strike prices; $15 Calls and $16 Calls. These are the Dec 18 2020's which envelopes two div payments. Stock rallied into the close and closed at $15.17/share. The Schwab Covered Call calculator provided these results: Dec 18 2020 $15 Call: Static ROI = 9.73% (assumes Calls are in the money and called) Target ROI % = 9.73% (w/ 9.89% downside protection) % Max Gain = 9.73% Dec 18 2020 $16 Call: Static ROI = 7.13% Target ROI % = 6.36% (w/ 6.66% downside protection) % Max Gain = 12.99% Plan is to Buy more shares during next 6 months at/below $14.40/share to replace those w/ covered calls. Other option is to Buy back one or more of the covered Calls sold on any significant sell off, then sell again on any significant rally. Will look at doing similar hedge on my other top 10 dividend payers including WMB, T, CTL and maybe BGS/ Will have to evaluate the Schwab covered call calculator, and price of the underlining security, current div yield and xdiv dates. EKS