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American Capital Agency Corp. Message Board

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  • reits_r_us reits_r_us Oct 31, 2010 12:14 PM Flag

    Another "seemingly" money maker

    Hi Ben,

    Good post! If you re-visit my original post I am only holding for $1.00 profit. You are out of the trade by close on the day after EX, win or lose.

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    • Dr. Reits,

      Even though your post of 10/13 details significant drops in EVEP subsequent to X-Div., it sounds like you are sticking to your tried and tested method of buying ITM puts, at open of X-div., and immediately placing a sell order for a quick 10%, done one way or another by the close of business the day after X-div. That's discipline, given the significant historical drops supported by your data. Same strategy for LINE, ENP, CQP, etc.?


      • 2 Replies to jimthweatt2001
      • Hi Cat, Jim et al,

        I just like scraps from the table Jim. If I can make a quick 500/1000/trade for only one to two days I'm all for it.

        I used to trade commodities and let so many pots of gold flee away from me I had to buy stock in "Fruit of the Looms" if you catch my meaning. When the broker calls and says Doc we need more margin you know you've reached the edge :-)

        So, I got the NOV35PUTS today for 1.05. What is with their decline in price for a down day?
        34.74PPS-.66divi gives 34.08. So I paid a 13 cent premium!! Not bad!!

        I plan on buying more on the open tomorrow if they are cheaper. Can't imagine. Am I missing something?

        At that price I will hold for .50 through 1.00 and walk away happy. I usually leave a couple on the table for fun..but yes, I've had all of my feathers plucked and when I see the farmer coming with the axe I run. I am not willing to stay in a losing trade.

        Speaking of which, I sold the rest of my CQP NOV20PUTS @ BE this AM. Again a down day with a decrease in the PPS with also a decrease in the put price. Go figure! I again entered that trade last TH and I will not hold a seemingly losing hand.

        Big week!! EVEP, ENP, ETP here we come!!!!

        Good luck!

      • I just did a write up on LINE. I don't want to repeat it because I spent a good time on it yesterday. It certainly has the attributes for a play, and I just bought some puts in AGNC yesterday to prepare for the Novmeber drop.

    • Just looking out for you. I have not shorted stock before, but I am tired of taking a bath on these bets to the downside around ex-dividend. Maybe, I just over expressed myself on your otherwise well structured trade.

20.75-0.05(-0.24%)May 22 4:00 PMEDT