Anybody buy puts today? I couldn't pass on Oct30 puts @ 1.40. Purchased 50..figured all it has to go down is it's dividend to break even..with AGNC announcing secondary might pull down whole sector further...we'll see :-)
Actually, I think the secondary shows confidence that this is still a great money maker. I'm pretty sure we'll be seeing rises in HTS and NLY. HTS already diluted, so I'm sure the only way is up. NLY could dilute like everyone else, in which case, there would be a hit.
No, I think you have it wrong. There is new reality setting in. There is a strong demand for high dividend stocks, so last month NLY traded up down by a fraction of its dividend while AGNC last week also did not drop by its full dividend. I think in HTS's defense the secondary is behind it and it did drop a bit with the secondary. Still, I don't think we now count on buying these so cheap, nor count on a drop for puts. I am not trading HTS, but AGNC. I don't see any reason to trade more of the same stuff, even their there are subtle differences in the business plans among the MREITs. Either buy or stay away.