In my opinion the AGNC stock price has already reached a level without much potential up to next ex. div date. On Monday I'll sell my 2K AGNC and go in cash until after CIM annouce the next seconday, which I expect will happen within the next 14 days, and then buy CIM.
Reik: I agree with you about going somewhere else to buy a stock that drops and then returns to previous price. I don't have a margin acc. so I can't short, but could buy puts. All my money in an IRA. I was looking at Yahoo's historical prices for Nov 2 close $4.04 Nov 3 close $3.86 ,18 drop. thats .04% Thats still not bad for one day. Thanks for keeping me on my toes.
You're running on two assumptions. The first is that AGNC will continue diluting keeping the price in a $29 trading range. And second, that CIM will follow suit and investor knee-jerk reaction will be to punish the price providing you with a juicy entry point and subsequent capital gain.
Fantastic insight! I think you're doing the right thing. No worse than Monkeys throwing darts. Go for it.