Its a pretty safe position IMHO. I have been thinking about a similar move, but with a shorter time frame i.e. March or April. I just don't like the odd ball strikes, and its difficult to get a bid/ask on the 20p.
WMC return is not a "qualified" dividend so the standard advice does not apply. Please research how REITs and mREITS work before you invest here. Clearly you do not have the experience to invest in this issue without more education.
"Everyone" is right when they are referring to "anyone" trading or investing in stocks when they do not understand the business model for a company, its fundamentals, and its gross technical posture.
When you buy any stock and lack conviction (because you lack knowledge about its prospects), then when it does perfectly ordinary market trading price movements, the down movements will scare you into selling at a loss.
The current depressed economy here and in Europe and Japan, along with forced gov deficit spending (needed to fund social progarams, because withdrawl could lead to insurrection as in Greece), are compelling all central banking systems to hold the short term interest rates near zero, and the longer term rates (mortgages) low, but not as low--and that is an ideal investment climate for WMC.
I agree, a good crash is coming. I am getting ready for the opportunity. Gold will sell off andf housing will crash with rates rising, The gov will start making cuts soon. and they are the only ones spending any money right now.