Perhaps an over asked question but:
I'm holding shares I purchased 2 months ago for $29.05. What's the best strategy now - sell tomorrow and hope to buy back when the SPO is announced or just hang on for the dividend?
Good strategy with the July28's. I am going to try to get them around .25-.30 on EX day, and then buy some shares about two days later. As PPS recovers hopefully buy some Sept puts B4 the July's expire.
Good luck to all!
Thanks for the ideas. Bought some 28 july puts for .35 for current protection. I am hoping for a sell off towards the end of the day as traders sell to grab the capital gain instead of the divi, since I think most still have losses to write off to cover the gain.
Should be fun,
I am hoping for 28.50 on EX with a few day pull up to 29.00 and then spo for 28.00 or no spo at all.. After you get your shares on EX at 28.00-28.50 wait two weeks if no spo then buy some 27-28 puts for .60-.65 for Dec. to cover your shares. As shares approach 30 sell 30 covered calls for .30-.35 to help defray the cost of your puts.
Let's have some fun!!!
The stock has a lot of resistance. It never dissipated since the "when is the next SPO" craze. So it is probably oversold. I would expect that a lot of the steam of the negative momentum has been used up. The drop on Tuesday will not exceed $1.40 and might even be (for the first time) less than the div payment. There is no magic here. Technical analysis works because the set of people who trade the same stock is roughly the same. So whatever moves they were planning on making, they already made.
I like you Vlad but your statements of fact are not accurate.
"So it is probably oversold"..RSI is above 50%. It is not oversold:
"I would expect that a lot of the steam of the negative momentum has been used up"
Stochastics measures momentum. It has turned down with %K below %D. Momentum downwards:
"The drop on Tuesday will not exceed $1.40 and might even be (for the first time) less than the div payment."
Almost got one point correct Vlad, but Dec 29th last year only dropped 1.37. Hey, you were close to being correct ;-)
"So whatever moves they were planning on making, they already made"
Don't want to break your record so I'm going to say this is incorrect also...but it is harder to measure ;-)
Had to give you a hard time Vlad..do enjoy your posts!
What if the shares that were taken from the call option are sold on Monday. Wouldn't that pressure the price and possibly drop the price under $30? I would think that not all call option shares would not be sold and kept to the ex date and then sold on ex date in hopes of capturing the divi and some return towards the $30 level. What bothers me is that all REIT's have been droping. IVR has fallen more than it's divi and still has not recovered. Trying to figure out what is the right next move. It seems like if AGNC continues to drop on Monday then Tuesday may continue the selling and price drop since those with call shares will hold and sell Tuesday. Maybe the only safe choice is to buy the puts, so the only money that you can lose is limited to what you pay for the puts. Any ideas?
No one knows when the next SPO will appear, to what extent it will cause the price to fall, and how quickly it recovers. Therefore, logic dictates it be stricken from the equation. Depending on the number of shares owned, if your proposed sale is equal to or exceeds the dividend, a sale seems within reason. Bear in mind that selling requires another decision with respect to deployment of the proceeds. If not, then holding to capture the dividend might be a better option. Each investor has to weigh the options and take the most logical path.
I believe you are correct. It's kind of a no brainer. The stocks are in an IRA so there are no tax consequences. Even if I sell tomorrow at the pre-dividend price and purchase the shares back for $1.40 less I'll have in effect collected the dividend less the small transaction price ($7.95 at Fidelity). If I can buy them back for less the $1.40/sh (after the SO is announced I'll be further ahead).