By Bret Jensen:
I have made quite a bit of money over the past 12-18 months trading in and out of high yielding upstream energy partnership Linn Energy (NASDAQ:LINE). This was especially true after a couple of negative articles in Barron’s last year alleging “accounting irregularities” knocked the stock down to the low $20s. This held up a pending merger with Berry Petroleum that was eventually blessed by the Federal Trade Commission.
I have been more of a trader of these shares since that significant and profitable opportunity. I have tended to buy since then on any decent dip, wait for a bounce and then sell just out of the money covered calls; collecting a better than a 9% distribution yield in monthly installments. My core stake in Linn Energy was recently called from me as the options I sold against the position expired in the money.
Rather than waiting for the next
