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American Capital Agency Corp. Message Board

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  • slegermark slegermark Jan 4, 2012 9:18 AM Flag

    Reits dogs

    Thank You.
    I have not yet invested in an REIT. Still doing my investigations. I have built a couple spec log houses though. Renting them out until prices recover sometime in the next millenium. I was thinking of long term puts on NLY way below the money. January 2013 puts at 5 for 0.08, gives one year for any bad news to scare the price down into territory that will give a sixfold return on the .08
    I have about no experience at options except for a longterm call on some northern WI forest that worked out well.

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    • Yes

      I would caution on your Put strategy. I have thrown more money away at speculation on OTM options than I like to think about. I do not personally believe NLY will implode enough to give you a return at 5. But what do I know, you could become a millionaire. But I like good odds, and I don't see that as good odds.

      Look at some of the spreads including ratios in my view messages I have discussed. I am after a 200% return/year. I believe by Jan 20th which is Jan option expiration(OPEX) this model 25k account under the thread " looking over my shoulder" should be up 25% in one month. If we can do that every month(tough) that is 300%/year. I set my sights lower at 200%...;-)

      Good luck and once again Welcome!

 
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