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American Capital Agency Corp. Message Board

  • reits_r_us reits_r_us Oct 19, 2010 1:43 AM Flag

    Another "seemingly" money maker

    OK...please feel free to punch holes in this stock and strategy!

    ENP..fallen on some hard times, lower divi than past..but that to me is moot. The plan is to short the stock on the open of EX-DIV day(I realize we have to wait for up tick) and immediately put your buy to cover @ a $1.00 profit. If not filled by day after EX-DIV day cover @ close.

    Here is the past two year history:

    Feb 2009 Filled on same day
    May 2009 Filled on same day
    Aug 2009 Filled on same day
    Nov 2009 Filled on same day..are you bored yet :-)
    Feb 2010 Covered @ close on next day for .99
    May 2010 Filled on same day
    Aug 2010 Filled on same day

    Your thoughts?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Just read the 3Q earnings release. Was going to borrow shares to sell short at open, but their dividend coverage was solid and they yield more than MLP peers so I abandoned that plan. GLTY.

    • There is political risk to your trade, all energy MLP's may pop today because of this:

      "The president suggested room to negotiate on energy, particularly Republican-friendly ideas like developing more natural-gas resources..." from this article

      and also from the realization of QEII possibly stoking inflation fears.

      Perhaps it's nothing, but keep an eye on the Obama headlines and how the other energy MLP's are trading today in case he says something that makes them all start to rally in unison in which case you'd want to immediately sell your puts. Politics and Fed policy are the big waves to ride in 2009 and 2010.

    • The party is not over until its over. I am still holding out for my $32-$34. I just have to live with a few days of upside pressure, but you might be surprised at the sell side pressure. People have done well with LINE and now that it is high. However, I don't mind being wrong, but I just have a funny feeling about this, particularly given the Cramer pump.

    • It is amazing how the stars fall out of alignment so quickly based on an idiot like Cramer's assessment.

      So much for getting those LINE calls @ 32.00 PPS

    • I just can't believe it. I was doing just fine with my puts, but then Cramer just pumps LINN.

    • Bought ENP NOV20puts for 50 cents. Hope to turn them for .90 tomorrow or Friday.

      Putting my money where my mouth is. We'll see how hard I have to swallow :-)

    • Good price Jim!

      I did not get filled @.90. I would definitely take some of yours off the table @ 1.50, as I am doing again tomorrow.

      Just a cautionary word since you're following me on the edge of this cliff :-)

      I have a sell on my EVEP's NOV40's open @ 4.50. Avg cost 3.45. I expect more downturn on this stock cf. to lINE. I will be in for more of EVEP tomorrow if we have a repeat of today with LINE.

      Tomorrow also presents ETP and ENP. What a week!!

    • I just really studied LINE. I did alright today having bought the puts at $34.49 and a drop to £34.20.

      You can look on the croc board for the details of the financing, dividend yields and trading. The stock is just rising and yielding lower and the company is more leveraged. So, I expect some more profits tomorrow.

    • First of all ENp's div.has been the same for the past 3 qtrs.And if you knew anything about enp you would know that they have a div.that fluctuates all the time...It is not a div.that is set in stone. And when it is lowered it does not necessarily mean the in trouble.I suggest you do a little research on th co.

      • 1 Reply to dianneinfla
      • Gosh Dianne,

        Why don't you tell us how you really feel. Do you have any useful information for our edification about trading or events re. financials that might edify the message board listeners that are here to learn?

        Maybe you could even enlighten the board on your prognostications regarding the banning of bull fighting that you so eloquently self censored yourself over on the Yahoo board.

        Please help me learn. Why does ENP's dividend flucuate "all the time"? (BTW 3 quarters in a row of the same dividend rather argues against that statement).

        My statement was referencing the historical higher dividends of last year.

        Peace to you Dianne...

    • I am for Dec. 35's that I bought for $1.49. Now, the stock is dropping as the history (and I know I will take a beating onthis point) suggeested it would. I am going to venture a guess, we end up at $34.10 to $34.20. Then tomorrow, I think we see £33.50+/. There is no way this can keep going.

      If I coudld post the graph, you would see a lot of red right now for those selling. If you could see the amount of red and the price of $34.34 (after having bought the calls at $34.42), you would be happy.

      The only thing I did differently was to by th December, because I don't want to put into a cordern. Oh, it just hit $34.32......

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19.49+0.20(+1.04%)Jun 24 4:00 PMEDT