Usual Price Action on SHLX = exceptional swing trades?
I've been observing the unusually stable price action on SHLX for a while now and I'm considering taking advantage of by using CSP and margin to diversify into AM for a dividend capture strategy. Essentially, when using margin, you want to invest in a stock that ideally has very little price action and low volatility in order to reduce the chances of being margin called. Considering the initial requirement is 56% and maintenance is 45% and the fact that AM is not only a cheaper stock but also has roughly the dividend, my thought is maybe you could effectively double the quarterly dividend returns by margining off SHLX to capture AM's upside volatility as well as capture dividends from both.
(leave a comment)