When they dump this many shares there will be weakness in the share price. It will show up within a week so remain patient.
It happened before and some of you may remember.
Besides the 1.40 divy is gone so don't chase it.
This time the pullback would show weakness and be more inclined to sell then get more.
American Capital: We're No. 1?
Shifting the focus closer to home, JMP Securities upgraded shares of American Capital Agency to "market outperform" this morning. In addition to the obvious attractions of the near-17% dividend yield, JMP thinks shareholders will enjoy some modest capital appreciation,,
You and I are in at the same price point on the 13Jan25s; should be good for some reasonable profits. Sorry to hear about your double screen entries (400 calls surprised me) on the June spreads. However, with a BE of 28.765, and max profit at 29 and above, you are in great shape. 29 makes you a 30.70% return. What are the chances of AGNC's price being below 29 in the sweet spot of the June dividend run? I'd say very low (slim to none). One caveat might be if AGNC moves its X-d. forward, like this month. In that event, if the X-d. precedes the June OPEX, then you will have to decide if the post X-d. price will still support your 29 price target (if this weeks's price action is any indication, you should be golden).
As regards your March spreads, you just need 29.50 by next Friday to BE. Given AGNC's recent momentum (all those NLY folks that you invited over :-)), 29.50 seems realistic. Whether or not we make it to 30 by next Friday, is a little bit less clear. Good luck with those short 31s.
Maybe JimR can give us a reading on what Mr. Gantt predicts for AGNC's price movement over the next week.
Okaaaaay, sure. That should have been obvious.... Glad I asked (I've never seen Bladerunner - guess it'll go in the old Netflix queue tomorrow, though).
Thanks Taymere! At least now I'm in the know (and hoping to soon be in the dough!).
Sure, It's the $25 strike LEAP calls, nicknamed after Roy Battie from "Bladerunner." Roy paid off my mortgage for me and also paid for this nice vacation/househunting trip to Florida that I'm currently on. Given the BV increases over the years the $27 leaps are now more like what Roy was then.
As the man once said, "Why a duck?"
Personally, I can think of about $2500 in value I could get from an acre of sandy, scruffy, swampy land that nobody can access without 4WD and a GPS, surrounded by parcels owned by people who know they'll never visit, can't build on, and won't sell to the logging company...
BTW, I've tracked down the etymology of the Roy. Could have gone either of two ways given board history, but it turned out to be the fictional one, with scripture courtesy of non-fictional Jim:
Still not sure whether the Roy is any deep-ITM LEAP, or the 13 strike in particular, or precisely contracts from the tranche that fell in Taymere's lap that day. But that's how legends go.
I'm feeling the same irony, mixed with a little apprehension. My most recent position in AGNC is at a net of 29.70 (calls), not that far from the BATESAT exit price that I've used successfully over the last year. Let's hope that the "new" range is equally as profitable for us.
Did you buy any options this cycle?