Hey Inthegame...,
>>This will drop the price to $27 for a short while.>>
I hope you are right..I want to be the first in line for some June options. Sweet. However, IMO, I believe any "bleeding" of the PPS, below 29 will be such an attractant to the sharks in the water, that there will be a feeding frenzy never B4 seen with AGNC.
Somehow, these folks have been led to believe(yield, time of year, history) that this is "free" money. Remember "Perception" trumps reality. At a lower PPS than the PPS minus 1.25, buying will occur in earnest. Look at this volume since the Earnings and dividend reduction announcement on the 6th:
http://finance.yahoo.com/q/hp?s=AGNC&a=01&b=2&c=2012&d=01&e=13&f=2012&g=d
Imagine if we had good Earnings and an increase in the dividend...;-)
Look at last year's March run(30.67) and then June's run(look to the year's intraday high on June 9th..30.76). Within three days after March's spo we were up from 28+ to 29+. Within 8 days of June spo we were up from 28 to 30+. Never saw your 27 right after Ex/spo.
If we do see your 27, I think it will be one of those rare Golden moments in trading when all the stars align...I am skeptical as those moments don't happen very often. I will try to hedge my urges at that moment with a claw hammer. I think that might work.
Good luck,
DocReits