svosavvy

Income in a Zero-Rate World

yes yes all correct, you could also do bull call spreads to limit getting taken out in a rising market. You could sell your covered calls at a lower strike for more profit while simultaneously buying a strike a few ticks above so you don't get pinched out in a wild upswing and pocket the spread which is some nice action especially like earlier mentioned if you are holding a high yielder you pocket the distribution too. I would love to do this with one of my positions pvx but the strike spreads are way wide on it and nearly illiquid (thinly traded).

Income in a Zero-Rate World

Don't forget that if you sell a call and then chicken out in a rising market you can always buy them back for a premium and then not lose your coveted position. It is hard to covet any equity right now.

Canadian Royalty Trusts Will Never Return to Their Former Glory

I doubled my position in pvx on 11/13 actually upped it by %120. Was looking for fallout from dist reduction, but, really saw none, I couldn't believe it was a relative non issue. From what I can see this along with all other oil related stocks imho have been lumped together and thrown in the trash can. Especially since I thought pvx's quarterly was a real rip snorter this time around, except for the down guide, but, everyone is guiding down. I am looking for the discarded carcasses of good companies mr. market is offering up. I may buy more tomorrow as I see opec's inaction over the weekend giving a real catalyst for more near term down action. I think these canroy's are neat animals, you get the oil exposure, a killer dividend, also I think an insurance policy related to other oil stocks exposure to the shenanigans of the world theater. Diversified not diworsefied, lots of nat gas exposure which I like going forward if there is a pinch on coal I look for a bubble there. All in all sometimes getting out of bed in the morning is a risky/bad decision, but, risk is the spice of life. If you don't like risk then buy bonds because shareholding is like marriage for richer or poorer. I know it's hard to think of any upside during a bombardment, but, that is the reward of the diligent. Happy Holidays, someone drink some scotch for me, lol.

Canadian Royalty Trusts Will Never Return to Their Former Glory

Oh yeah, even with the pvx reduced distribution, you can basically give those guys a dollar at their current DEPRESSED share price and they will give you back a penny a month. That's compelling value

Canadian Royalty Trusts Will Never Return to Their Former Glory

Thank you Mr. Ward for your thoughts regarding tax issues I always get a kick out of reading about the canroy tax boogie man. I also found it interesting that no one has mentioned the risk management strategies employed when talking about the price of oil in this post. I am long pwe and pvx and know they both employ costless collars as a means of reducing volatility for a portion of their supply (looking pretty smart these days imho). Also the very nature of "E&P" heck just call it the business of oil is truly the "I drink your milkshake" mentality. You exploit and move on, that is the nature of commodotizing the ground. Follow the model of any hard good be it metals minerals or energy. Additionally, pvx already cut their distribution big time (I take that as a good sign that they have a grasp on reality or at least can get away with it). Also pwe has already stated they will re evaluate their distribution funding level after the january payout.
thanks