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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (78207)	10/7/2025 9:25:39 AM
From: Elroy	Read Replies (1) \| Respond to of 78464

Rather than sell out over years, why not buy more and increase your cost basis through the purchase? That's what I'd do! I think fertilizer is going to do well over the next six months. This time, rather than buy UAN, I bought a Feb $95 call and sold a Feb $95 put, made $3 doing that, and now I'm effectively long UAN at $92. I will not receive the next dividend, but I think for all other purposes it's exactly like being long UAN at $92. No K-1. And any gains on the options are section 1256 gains, which are 60% long term cap gain and 40% short term cap gain. I will reassess in Feb next year whether to actually buy the units. UAN seems like a good stock to buy and forget about, and just collect the distributions forever.