Did you go short on NLY? The concept of profit taking in another post is really off base. The profit taking should have been right before the announced divy date when it was over 18.
NLY has done its traditonal drop after the annoucment and at this point it doesn't look like it is going to drop below 17. Why should it as long as one feels they can keep give a dividend somewhere in the range of 45 to 50 cents?
Anyone who buys NLY for capital appreciation and profit taking really does not understnd the nature of this investment. This is a buy and hold investment unless you really think the spread is going to be so thin for a long time that the divy is going to drop dramatically for a long time. Taht is always amaybe--but I don't see that happening.
You can make more than the 12% dividend when it comes to this stock.Example I sold when NLY was over 18.I then shorted the day after ex divy date.Back in as a long at 17.26. Divy was .50 I lost the divy but was able to gain almost another .30 cents even after sale.I also gained another .20 cents on the short side. Sooner or later my cost on this stock will be 0