Hi All -
Not really knowing what to do, I bought a bunch of AGNC Calls - March 31's @ 1.52 a few days ago..thinking it was time to start...
I would like some opinions/advise on how to play that...how long to let it go (I imagine it might go down before it goes up, etc)...but given the sequester and the "Dorner" thing (please don't think that was a serious comment, about AGNC, but it seems to be occupying some time, here) and other stuff, how are you all planning to deal with this? Remember,,,I'm an Architect, so "Planning" (with a capital "P") is really important to me /;-)
OK, so...that's cheese, right?...(queso)...sorry, it's a little past my bedtime...
I guess I'm thinking maybe wait for the official divy announcement, with the concerns about an SPO, etc....but will there be any "run" left by then?
Sorry, you guys, I really am trying to learn this stuff, but I think most of you have had a pretty big head start, so don't make too much fun of me, K.....so. ?
You're doing a good job on the board, Foxy...;-). I dumped those opts on valentine's day, before the drop...very llittle profit, but profit none the less!
Thinking to wait til next friday to see what happens before re-entry.
My 02c, I'd personally be a little worried about utilizing March expiration, which is approaching very rapidly. The sequester as you mentioned is something to stay cognizant of. At least IMO, a deal or small set of deals is more likely to come after we've crossed March 1st than before it. If so, as we push further and further past March 1st, the market will likely get more nervous...
A few people have mentioned the possibility of an AGNC SPO soon. I have no idea if there's much likelihood of such an event (would love to hear thoughts on this from more regulars). But as a hypothetical, if that happened relatively soon, the stock price takes a temporary hit and then you're into sequester territory.
Don't get me wrong, AGNC may just keep trickling up from here and your March calls could end up great. But you could buy an insurance policy against both these events for "almost nothing" if you sold your March calls right now (seems like you could get what you paid for them) and spent about 11c-12c more per share for the same strike with a June expiration. To me it's a no-brainer to utilize at least a June, but YMMV.
Good luck either way!