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Capstead Mortgage Corp. Message Board

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    • >>Selling puts is generally less risking than buying shares.<<

      But honey, someone has to own the shares or there would be no puts on the shares.?

    • Selling puts is generally less risking than buying shares.

      If you don't understand why, you need to look into it more closely.

    • By the way I am not hoping for southward movement....would be perfectly happy if it went to $20 per share....I keep my $1.55 per share for a wait of 5.5 months and go on my merry way.........maybe you don't understand how selling a put works???

    • your mouth....You are rating this stock a strong buy and it is now at 12;76,yes???

      Obviously that means you think this is a reasonable price for the stock, yes?

      So why then are you criticizing me for being willing to buy this stock at a net price of $11 per share after adjusting for the put premiums I have received.

      then at the end, you say "if you are hoping for southward movement, I'll be collecting". if you are long the stock and it moves south, (meaning lower) WHAT EXACTLY WILL YOU BE COLLECTING??? The only way you would be collecting is if you bought puts which would then gain in value if the share price fallls.

      Now please explain why you are pumping the stock with a strong buy rating, yet planning on collecting if the stock price falls.

      I share your sense of direction (that is if you really mean it when you say strong buy)...that of level price in the stock going forward.

      Perhaps you should re-read your post and see how confusing it is for someone who rates this strong buy to be making money if it drops in price....perhaps you are speaking of the profit if you are selling covered calls and the shares are not called away??

      Good luck anyway.

    • The government IS the backstop for Fannie and Freddie. So I'm not sure what the issue is other than shoring up the fact that CMO is NOT treading in shark infested waters. Shorts would have you believe that the building is on fire with the gas main wide open. The fact is that if you're a short here.... Better panic!

      • 1 Reply to markitcorrect
      • Price action in this stock and the sector is not due to shorts bashing, but rather Govt WILL CONTINUE TO BE THE BACKSTOP for Fannie and Freddie with the national debt and deficits soaring exponentially.

        I am long CMO and NLY via $12.50 naked puts in both. would not pay over that price for this stock and same for NLY in 2 years.

        Govt cheated GM bondholders out of their money to favor the unions when they bailed out GM and took it over. Bond holders got ZIPPO even though they were legally entitled to be made whole before common share holders ever see a penny.

        Obama cannot be trusted as he proved in that case. He enjoys redistributing wealth and voters would be only too happy to see the govt back away from the fannie/freddy debacle.

        Tread carefully in the sector and be careful not to over-pay for these investments. likely only a small chance what Barney is spewing about will come to pass, but the cloud hangs over the sector nevertheless

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