That is the question indeed- given the conference they held before the Fed announcement was purely dedicated to QE3- is it
1. Hey - we warned you about the QE3 effects..................
2. Hey- we knew and were prepared...................
The big question here is: Will they do an SPO at such low share price? An SPO at our current price of $32 would drag the share price under book value. So, my thinking is: SPO is unlikely until share price recovers.
I defer to Onion as he is in the biz- he did not think they would SPO- if Fed does not buy till Jan- will they pull the trigger and do a large one. I do not know.
I got June calls because of the uncertainty and likely increase in Book Value/PPS. I think Dec runs are the weakest as I recall as well so given all that- AGNC at 32 was a buy for me- but only for DITM calls way out. If it falls below 31, i will buy the stock.
My sell point for shares will come when the economy finally (if ever) heats back up and the Fed takes the pedal off the gas to where ZIRP is removed.