I'm not sure that it was a good trade. Just to be clear, I'm more or less in the same boat with 29 September calls at $.70. My concern is that QE2 ends on June 30. That means that approximately 60% of the government's debt will require purchase by someone other than the government. So, the question is who? And how what will be the interest rate? And what effect will that have on the interest rates that AGNC pays for the funds they borrow?
Obviously, my concern is that interest rates may go up considerably, and the spread for AGNC will go down, and the pps will go down. I'm beginning to wonder if this was not the best time for the option trades that have worked so well in the recent past.
I think you will do well if there is a good earnings run. I assume you paid around 1.00(?) and the PPS should reach 29+ by earnings(7/25) and you will still have three weeks of time until expiration(Aug 19, not 20)....so you should make at least $20+ times 119. Not bad for a few weeks work ;-)
Only wild card is another spo. A good time would be right after run up to earnings. Dec 9th to Jan 14th were two close ones. With more shares authorized I would unload those anytime I saw profit going into earnings.