Seeking Alpha
  • Brandon Gibbs
    any suggestions for good ways to hedge CLMT?
    12/23/11
    Reply (16)
    • Ocean Man: CLMT puts?
      12/23/11
    • Brandon Gibbs: ah yes ofcourse, i was thinking more so along the lines of something that would hedge an entire index.. CLMt has been in a tight channel
      12/23/11
    • Brandon Gibbs: *CLMT
      12/23/11
    • Brandon Gibbs: or am i going about this all wrong?
      12/23/11
    • Ocean Man: Nice move in MMLP this week. Up 7% over the last 8 days. Plus the 9% yield. You still in that with me?
      12/23/11
    • Brandon Gibbs: yessir, thats about the only trade working for me right now.. that and buying the bottom of TQNT..
      12/23/11
    • Brandon Gibbs: DECK killed me, out of it yesterday.. and feeling worried about buying SDS calls too early.
      12/23/11
    • Brandon Gibbs: im still slightly confused about tax implications with MMLP.. im not trading with big ammo here, im only 25, taxes cut into my profits?
      12/23/11
    • talbano: any profit will be considered & taxed like income - generally and stocks held lass than a year -they say mlps r best in IRAs for younger ppl
      12/23/11
    • Brandon Gibbs: Ok that's consistent with what I'm doing. Though I dont see what difference an IRA would make other than forcing you to hold your MLP..?
      12/24/11
    • Ocean Man: Sorry, but what talbano said was incorrect. MLPs can cause problems in IRAs and 401ks due to UBTI. MLP dividends get special tax treatment
      12/24/11
    • Ocean Man: thru the K1s you get at the end of the year - wait for them before you do your taxes (they come late - mid to late March). Most of the MLP
      12/24/11
    • Ocean Man: dividends will be taxed less than ordinary dividends, but when you go to sell your MLP, that deferred tax comes back to hit you.
      12/24/11
    • talbano: om - so even if mlps are in IRA u have tax implications even when reinvested? I have never heard that - learn something new
      12/25/11
    • Ocean Man: You have to own a pretty big chunk to run into the UBTI problem, but a big part of their appeal is the tax deferral which doesn't help you
      12/25/11
    • Ocean Man: in the non-taxed IRAs and 401ks.
      12/25/11