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Sold 20 contracts for .35 the Nov 16, 18 $12.50. This goes with my trade where I bought 2,000 shares @$11.01.
Down 1,100 points in the last day and a half and NGL is still going strong, good luck to us all.
Agree.
I found yesterday action in NGL very interesting. We held up in the face of a 800+ down day. I think we are seeing an absence of sellers and that fat safe div is looking much better in nervous times.
Todays trade will be looking at selling some covered call options, probably Nov $12.50.
I have them priced at .35,my guess is, NGL will need to get to 11.65 to get order filled. Options expire after div.
I really appreciate the comments from both of you.
Thanks man but honestly, it is a softball question if you have followed NGL. Investors both individual and institutions want stability, they want to know that management will hit projections and do what they say they will, investors want consistency. NGL management has aimed high and fell short in the past. I think they have learned their lesson.
Management has made it clear that the div is safe, they are doing a much better job of communicating goals and current operational performance/issues. So, if you can count on management for solid communication, debt reduction and a solid div, what is it worth? We also know that management is buying the stock and they have signal that a div increase could be in the cards when the stock trades higher. Why raise a div when it is already 14%.
I know you asked him but to me, it comes down to growing confidence in management. As they reduce debt and reiterate the safety of the div, we will rise. Once the market believes in the turnaround and forward view, we go.
Got second 1k @ 10.99.
At his point, I am done buying. As long as I have the latest 2K shares, I will have to close out other positions in order to buy so I am done but will post any trades.
The next play is to buy 1000/2000 shares and trade it into earnings. I have my option play going but I plan to buy 1k/2k NGL and trade them into earnings. I we drop below $11, I may exit the trade.
EDIT:
That was quick, 1,000 $11.01. May take a shot at 1K shares at 10.85
I look at it the same way. I do not subtract out my divs from CB but that's just because I am too lazy.
I think it comes down to what you believe the stock, the div and available funds. Based upon everything management has said, the div is safe. So if that is the belief and I want stocks that pay a solid div, buying NGL at $11, is better than buying at $13.
If I like NGL and I think it is going to $15, the lower the price, the more I buy, the more I will make if it does go to $15. Plus I get a fat div until it does.
Now, if I bought at $15 and I do not have any more money to lower my cost basis, and I am not confident in the div, I am probably not happy.
Honestly, I have never made good money on any deal where I buy a property in an area that everyone loves or buying the hot stock. The best deals I have ever had were ugly and uncomfortable.
I am waiting to see how we trade at the end of the day. If we get to $11.01, I will pick some up. If we break below $11, I will wait until tomorrow and see if it trades weak at the open.
I do not get the sense that the price is actively being driven down but traders may try to do so this week. Who knows? Not me, just guessing.
Congratulations to those that bought this morning. I was working and never had a chance to look at NGL. Of course I should have put in some low offers just in case but I did not.
Not even sure how I will play this. Yesterday I bought where the price is now. As of this minute, I plan on waiting to see if we sell off later today and jump on anything at or below $11. With that said, I change my mind because I keep asking myself "Do I want to miss $11.25 to try and save .25/share. I will update if I buy anything.
Across all accounts, I hold appx 20,000 shares which is about 16,000 more shares than I had ever planned to buy.
I was pleased with today's pricing action. Being able to pick up stock at this price is great.
Options can be risky but I dont see them as stock, more as a div. My last play is a safe play but it is a gamble. Usually, I just sell the calls against my stock for a bit of extra money. Take NGL, right now, you can sell the $15 January 18 "Calls" for .10. If you wait for a bounce, you should be able to get .15. Let's say you have 50,000 shares and you sold the $15 January calls for .15., not counting fees, that is $7,500.
Are we going to hit $15 by January? If yes, fantastic, if your stock gets called away, you can always buy it back. If not, you are up $7,500.
I will explain. Knowing that others will read this, I will cover things I am sure you already know.
First, this play works as long as you think NGL will rise above $12.50 between now and January 18th.
I sold 10 "Put" contracts and received $500 ($50 for each contract). 1 Put contract equals 100 shares. I sold the January 18, 2019 Puts with a strike price of $10. In effect, until January 18th, the person who purchased my Put contracts can force me to buy NGL stock at $10 a share. As long as we stay above $10 the Put will expire worthless. Even if I have to buy the stock, I do not lose any money until the stock falls below $9.50.
Now I have $500 from the guy who purchased my Puts. I am going to take that money and buy the January 18, $12.50 calls for .40 each. This will cost $480, which I got from the guy who bought my Puts.
This play is pretty safe unless the price of NGL falls below $9. I say $9.11 because even if I have to buy them at $10, I got .50 for selling the Put and I should get a div payment in February (.39).
This play does not really cost me anything because I am using the Put money to buy the calls. Now if NGL takes off, I am making money. If it stays between $10 and $12.50, all options will close worthless and it cost me nothing.
I am trying to sell 10 put contracts for .50 (Strike $10) January 18, 2019 and then buy 12 call contracts January 18 as well, strike price $12.50 for .40.
Not sure if it will go through but we will see.
It was 200 @$11.25 and it got filled. Did not really expect it to but it did. Will put in another order @ 11.25 and 11.05.
I think today is a combination of the Dow being dow and a bit of profit taking on a low volume day. I am buying
Put in an order of 300 at $11.25
Rule #1, I do not listen to pumpers.
Rule #2, Always look at management - IMO, this team is shady
Rule #3, Do not invest in companies if they do not have revenue. CBIS has about $4,000 a year, last time I check. Yes, that is 4 grand.
CBIS is breaking down and everyone sees it.
Added to my position today. I know the board is not real active but maybe we can change that
Anybody who wants to play a bounce would be throwing money away. Look at a 1, 5 and 10 year chart. Yes, a few dead cat bounces over the years but all this stock has done is losing money
I know it goes against common sense but I used 60% of my funds to setup positions today. Here is my thought process, NGL will be the vast majority of the holdings for this account. My opinion is that NGL's trading range is low of $10.60 to a high of $13.60, not considering any new upgrades/Downgrades/PR/Opinion/news. Assuming a current price of $11.60, we have $1 to the downside and $2 to the up. I also feel that traders may not be trying to push NGL down, if true, we could easily float up to $13.
I will reiterate my overall goals for my IRA and NGL, consistent Div payments. If that is all I get, I will feel good. I want to make that clear as I would not want someone to buy because they like what I said and hope that NGL goes up to $15 in the next year.
I will also be selling calls against my positions for additional income.
So far today, I purchased 5,500 share of NGL and took smaller positions in EPD, GMLP, HTGC, TWO & PNNT.
The pricing action is unusual. I was able to get my rollover check and deposit it. I started (In my IRA) a very strong position in NGL today. I do not have faith in a big pullback. With that said, I will leave some powder just in case.
If we are lucky, we get one more, big push down for a final chance to load up in the mid to high $10's
I cannot disagree with buying. I thought we would pullback after the .90 increase we saw on Friday. We have low volume today and I thought we would have a bigger pullback, it just feels different. I know at some point that the people who pushed it down will jump back in, maybe we are there. It has to happen at some point.
I may fish here too, I was really hoping/anticipating a pullback below $11 but I am not seeing right now and each day closer to earnings, the more upward pressure we have.
Very surprising. Thought we would pullback but up .20 on nice volume.
Good luck to us
I am seeing it too. You are correct, spread was .05, now it is .01
Jugs,
Agree completely.
We have been here before and pullbacks are common and should be expected. I expect a pullback but not enough to try and play it. I hope we do see a pullback as I would like to add NGL in my IRA and if I had the money in my account today, I would start picking it up right here. I believe at some point, the traders will switch from pushing NGL down and push it up and I could see losing an opportunity to add because I waited for a pullback.
Good luck to us all.
If you dont mind,would you PM me your email, I do not have a paid account here. I guess I should but I guess I am too cheap
I will continue to look at it but went ahead and opened a position in my non-retirement account, 200 shares. I did look at the RSI, its below 50 and its been above 40 for a while and could stay there so I figured, may as well take a nibble. This way, it motivates me to really research before I buy it for my IRA.
I have nothing but faith. As I mentioned yesterday, I have 10 to 14 days before I can buy into my IRA. Will not be disappointed if we fall back to the $10's.
It will be interesting to see how we end up. Is today's action due to decompression or is it a lifting up to hammer down the stock at the end of the day?
Maybe you did mean $12
Looking at this now, thanks Pete.
A bit of insider buying, solid 6% div that keeps slowly being raised, technicals that are decent, solid support at $28.50 and resistance at $30. Overall appears to be consolidating. If it breaks above $30, could be interesting.
That is all I have looked at so far but will keep at it.
Thanks again.
What is the new buy point?
I am looking to pick a few brains here and see at what level, if any, a good buy point existed. I was previously in and got out at $4.15 but I think the stock is worth taking a shot.
I guess it comes down to this, if all charges are true, where does the stock price end up?
Well, just started a position, 300 shares. Not an active board but glad to be here.
You should post more.
Thanks for the info
While I would love to see NGL recover, I really want to put my 401k money to work in NGL. I have a few other stocks to look at but NGL will be allocated 50%. I have to go back to my list of stocks that I watch to see if they are at my buy price.
It can take up to 2 weeks to get money from ADP and then deposited into TD account. My father in law would have said "I should have your problems".
Good luck to all and Len or Pete, if you think of any stocks for me to look at, email me. I am too cheap to pay for the investorhub account so cant PM.
You mean $11 but I will take $12 if I can.
I hate to be selfish but if the price stuck around here or fell to low 10's, I would be thrilled. I need another 2 weeks before my 401k is rolled over.
It was doing fine where it was but I think I have a better idea where to put the money. Half into NGL and the rest in a few other stocks.