We went through this exact thing last year at this time. I trade this stock, almost exclusively, because of its consistent behavior.
I also have a very good memory, of pain, and gain....;-)
Here was the sequence of events last year(approx):
July 29th....6.00 intra-day decline from previous close
What a great opportunity to have bought those dips. You know why? Because the Sept run happened right on schedule and the point gains for each of those dips was this(exact):
If anyone's counting that was a whopping 12.91. Who cares about a dividend of 1.25?...;-)
Today is falling right into the same pattern. People will be saying, "Remember those dips in August 2012..imagine if you had bought those dips"
50% mindset, 25% skill, 25% luck.
I have a handful of stocks I watch like a hawk and notice patterns. I noticed BMY had a lot of difficulty breaking 36, so I bought puts.
I was expecting a drop to 34.50, so when it went way below, jackpot!
Calls are more difficult for me. I tend to be down several thousand on a position before it turns around and I sell for a profit. I'll make good money on my AGNC and BMY calls, I'll be lucky to sell for a manageable loss on my FB calls.
Most of my money has been made with puts.
I used to buy and sell all my shares several times a year and make more in cap gains than I would have in Divis Then Ben and Doc convinced me to buy and sell options.
I hold my shares for divis and buy and sell the options for gravy.
"Who cares about a dividend of $1.25"
I DO! I hold the stock for its $5 annual dividend and very high yield, not the PPS or options. Is there something wrong with that?
Seems that most posters on this board believe this stock is only to be invested in for its options. I just collect my nice quarterly dividends while others fret over PPS and options. Guess that makes me weird, right?
The Longs comprise the silent majority Pappa,
You'll do fine. The 1.25 reference was a tongue in cheek reference to the incredible " yield" to be had , in relation to the dividend, by trading on days like today.
There are just a lot of shareholders who simply don't understand how AGNC works, they always treat it like a "regular" stock, which is great because it provides consistent dips where the rest of us can add to our positions. Reading the "analysis" from TheStreet it's clear they don't understand the business model either, or they are manipulating so they can get in, too. I'll be adding more AGNC as cash gets freed up on these dips.