MTGE is up this morning, having recovered approx. 28% of the div. drop.
I'm pretty sure their ducks are in order for them to have a spo whenever they see fit.
Does anyone else think it will happen this week,making MTGE a good stock to short until the spo?
Good luck this quarter to all.
Thanks for any input, FOXY
By the time I asked this question and put in my short sale order MTGE dropped .36.
I shorted anyway.
Being a big fan of MTGE, my hands shook while placing the order, I guess out of guilt.
I only shorted once before,AGNC, successfully,for one day.
I'm betting on the spo coming soon, if not today,then this week.
Did you try options instead of shorting? Buy an out of the money put. Many have discussed this and the consensus is to use options that are further out in time so that the time decay doesn' t get you if your timing is off on the spo. Conversely, if an spo is announced, that can be a good time to sell a put (which is a synthetic long position) because the option premium will rise on the stock drop.
Hey Foxy .... Well, the gain today is gone for the time being so you might change your mind about the short, but I do think an SPO is imminent. They might want to let the PPS recover a bit, but it should happen within a few days, and maybe this week.
I might set a cover price where I can "win" a free lunch.
If MTGE does its spo today then I may still be short, but if not today then I'll be hanging on a branch.
The way my brain is wired I cannot wish for something to not do well, as I was taught by my parents.
If MTGE waits, or does a "drip spo" this quarter ala AGNC 1stQ, I could get hurt a bit.
Not really knowing how to short, I will try to set a sort of "stop loss cover", at 25.35, giving me a .07 gain on the short.
I really missed out on the other .36.
If I was able to have gotten the order in at a higher price, it would have provided me with a much larger cushion.
Thank everyone for your responses so far, FOXY
P.S. Robert, I got beaten up badly with MCP(out at 15xx).
I'm having trouble posting on this message board.
I'll respond directly to your post about MCP later, FOXY