You actually read M Fool? What did it say. Don't forget to do a virus scan.
I agree with all 9, check it out. It is worth reading. I am now completely out of NLY moved to AGNC and very happy with the move.
fred-_red-oak; It just doesn't work the way you say it. If the Put is exercised it is because the stock trades BELOW $1l.50. How can you then sell the shares for $11.55 ?l
I just got through selling puts for each 11.50 strike price through Aug 1. They will probably expire, worthless. If assigned, I'll just put them up for sale at 11.55. It is just something to do while waiting for the divvy.
You can set up the dividend to buy more shares, which will then give you a larger dividen next time. This also allows you to average your costs basis down. With the power of compounding, a very good way to make a lot of money.
I've been there! A year and a half ago I was trying to figure out what I wanted to do. I was down HUGE. When going through my options, I found a file I had put together while doing my DD. At the top I wrote, "long term holding, ride out the ups (don't take quick profits) and buy on the downs". I realized why I had bought NLY in the first place, I doubled down and have added another 2/3 to my holdings. This averaged me down and I am now positive with my divideds set up as DRIP. It won't be long until my cost basis is below $10, a place I do not believe NLY will be again any time soon.
The stock goes down by the amount the company is giving back to the shareholders. They are technucally losing value in the company by giving away the cash....back to us. It will go back up....just be patient.
I own NLY in a Roth IRA. No tax selling. Since I have the dividend set up as a DRIP, my cost basis goes down and I pick up shares. Net net, I'm up $3,100 over yesterdasy. A bit better than a CD. Thanks through.
This is ex-div day. happens every 3 months.
No biggy for any one who is in this anything like long-term.
Actually there is a change, your position's principle has dropped and now you have to wait about 30 days to get it back when the dividend gets deposited to your account.
If you are in the black today you were in the black yesterday. The price of NLY dropped by 30c on the ex-dividend date (as it should). No change in the total value of your account.
Post X buying is a well known strategy. It is good if the dividend is clearly sustainable. Often times, the price continues to drop a bit. It doesn't seem to be happening today.