I'm guessing that the fiscal cliff euphoria is about played out and PPS will meet heavy resistance @ the 50 dma (31.08). AGNC just filled the 31.05 gap from 12-21-12. Am guessing/hoping that it fills the 29.04 gap next as there are no positive catalysts near term and debt ceiling drama ahead in Feb.
If I'm wrong ... Plan B = Sell Bull Put spreads against these Jan '14 30 Puts. I'd like to own AGNC long term, just think it's going lower near term.
I'm an option idiot....i mostly only do covered calls.
Of i wanted agnc long term, and thought it was going down , i would buy the shares right away with a covered call say 10% under your share price. What is it an advantage/disadvantage my way rather than say the first put you mentioned.
I'm curious, O1C, what's your exit plan for those puts? Are you holding corresponding common that you're protecting? What if, like Doc expects, the div is lowered? Won't that let the air out of your puts' tires? Just wondering. (I do like the Plan B, however.)