My Short Puts in the future will be spread with a long leg to avoid the "Oh S$$T" possibilities. Even though I have established my "Rules" for myself of buying the shares in the worse case scenario at my Short Strike, I even considered(for a moment) taking my 30-40k loss in WMC when the sky fell the last few days.
I am still down 15k, but at a price to book of .9 and almost an 18% yield I will take the shares, rather than the instant loss, on a cover.
I still see 34+ and probably 35 by EX for AGNC. Think for just a moment about 60 million shares that traded, over the last few days, with half of those exiting at a sub 29 PPS!! How do you think all of those folks feel??
I peeled off a little of my WMC a few days ago DOC and just took the loss.
With the market looking bearish I just decided to reduce my exposure since I had 70K in WMC shares.
Generally that is a bit more than I want to hold in one stock and I was never able to peel off any of it after their SPO.
I've been trying to pick up more Jan 20 Calls this morning for WMC but can't get the price I want.
Will keep trying though.