I am taking another run at the master limited partnership (MLP) – Enterprise Products Partners L.P. (EPD). According to Morningstar “It is the pre-eminent midstream infrastructure company, vertically integrated with best-in-class assets at nearly every point in the midstream value chain.”
Here are the details of the trade:
- Sold: 10 Feb 28, 2020 Puts
- Strike Price: $26.00
- *Premium Collected: $600.00
If I am forced to buy the 1000 shares, my entry price will be $25.40 per share – almost a 28% discount to EPD’s Morningstar Fair Value of $35.50 per share. EPD is currently paying a 6.71% dividend. With the 30 Year Treasury Bond crashing to a Yield of 2% today – I would be happy collecting that Dividend in 2020.
*Excludes transaction costs.
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