AMLP (Alerian MLP ETF, Expense Ratio 0.85%) is the largest ETP in the MLP category, having attracted approximately $5.7 billion in assets under management, slightly edging out competing product AMJ (JP Morgan Alerian MLP ETN, Expense Ratio 0.85%).
The space has been very popular among ETF portfolio managers and investors during the past few years thanks to promising returns as well as attractive yields.
AMLP for example currently has a yield of 5.94% and has largely participated in 2013’s equity rally along with other yield oriented sectors including Utilities for example, and options activity has picked up specifically in this product.
Since options in AMLP do not trade frequently in the marketplace nor do they typically trade in relevant size, when they do, it forces us to pay attention.
The May 17 puts were accumulated in Wednesday’s session as the ETF lost more than 1%.