10.08.15

Good morning, 

1.Sunoco LP Common Units

Close out 200-units of $SUN and close the October puts. Shares are at $34.64. The stock is in the retail oil space with convenience stores. 

Rationale for Buying: I bought $NRZ with a 14% yield and a totally hedged.

Net $7,050-Credit

2. Buy a Full Position in NorthStar Realty Finance Corp. (NRF) w/ Protective Put

Buy 1,000-Shares of $NRF at $12.61.

Buy 10 Jan-expiry protective puts; $12-strike for $65-each. This adds up to $650. The name should have a European -Commercial spinoff in the near-term as well. We receive 11.07% yield and a commercial foreign spinoff (e.g., Germany is well positioned per the attached document) to back it up.

European Spin-off Investor Presentation (2.26.15) (1)

NRF Aug Corp Presentation FINAL (1)

Dividend Yield of 11.07%

3. Big Deal Trades: Buying Long-Term Option Spread if the “dell to buy emc” rumor is accurate. 

Buy (5) EMC Corporation (EMC) Calls EMC Jan 2018 27.000 call (EMC180119C00027000) for $2.25 each 

-or $1,125-debit

Sell (4) EMC Oct 2015 28.000 call (EMC151016C00028000) for 27-credit each
or $135-credit.
Buy (5) EMC Jan 2017 30.000 call (EMC170120C00030000) for $90-each
or $450-debit.
If the name moves from $27 to $30 in the next 18 months, you will do ok. We have the 2018 LEAPS on strike $27.
4. Buy 500-shares of New Residential Investment Corp. (NRZ): 14% yield. Fortress managed. I am focused upon high yield with the low rates. The high rates can help us build income for other opportunities. 
5 x 80 = $400 for protective puts:  NRZ Feb 2016 12.500 put (NRZ160219P00012500)
500 x $13 = $6,500
Todd

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