Ten days ago, I started a new position, EV Energy Partners LP (EVEP). Since then, the position is up 12.5%.  The position is roughly 6.7% of my account so it is a decent sized position.  The question then becomes, what do you do with a new position that shoots up nicely in a short time frame.  Do you scale back some of the position?

This is definitely not the anticipated strategy with this position since I’m mostly invested in the position for the high dividend yield (10-11%).  Because of the dividend, I don’t plan on unloading all of the position, however, I would be comfortable selling 30% of it or so in order to lock in some profits.

I will probably just put in some trailing stops to dump a third or so of the position should the move retrace lower.  That way I can lock in a nice 11-12% profit or so and be ready to buy back in lower.