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American Capital Agency Corp. Message Board

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  • reits_r_us reits_r_us Nov 26, 2012 1:34 AM Flag

    Short Puts Still on Sale


    An added bonus on the Short Dec Puts is that they are all priced for the EX occurring B4 OPEX. Those 37s are fair at 6.50 if EX is B4 OPEX. They drop to 5.34 if EX is post OPEX. So if management makes a late EX after the 21st you will be a dollar richer to boot!!


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    • Got filled on 155 Short37Puts. Here's hoping and expecting. With the spreads 37/33 and 37/30(I rolled my other short spreads) should be close to 50K payday @ 35 by OPEX. Not X but hey, I am after crumbs....;-)

      Got to love this stock!


      Sentiment: Strong Buy

      • 3 Replies to reits_r_us
      • Hi Doc,

        Short Puts Question:
        Say you shorted the Dec37 for $6 and I shorted the Jun34 for $6 , rounding the number for easier comparison. We both plan on closing the trade in December on the divi run to ex.

        So, we both collect the same premium and we are both bullish and we both buy back the puts at a lower price. Do we profit about the same from the trades or is there an advantage to one over the other? Say we closed the trade when AGNC is at $34 or $35.

        Any thoughts?

        Thank you,


      • Thanks very much for your explanations Doc Reits.

        One additional question if I may:

        "roll over"- does that mean sell your existing options and buy new ones or can you actually pay a fee to change your option (price, exp date, call/put) etc.

        Thanks again!

      • Thank you Doc,

        yahoo didn't let me reply to your response.

        Here is the part of your post I'm a bit confused:
        "as the PPS goes to your 34.00 and if the EX is post OPEX, in this example(I hope), then I let the 37 expire @ OPEX, or buy it back the day before EX, for 3.00"

        If you let the 37 expire when AGNC is at $34, wouldn't that mean that you'll be assigned the shares?


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