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Annaly Capital Management, Inc. Message Board

  • smartinvestor smartinvestor Mar 3, 2011 10:11 AM Flag

    Why NLY is so heavily traded?

    Anyone daytrade NLY?

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    • I don't exactly day trade, but I do trade. I bought at 17.35 awhile back and sold at 18.05. Then they issued more stock and I re bought at 17.40. I will sell above 18.00 or wait for the dividend. Either way, I make close to the same money. Up until today, I was showing a $500+ profit on a 1000 share block in a week or so. Even now, I show a $450 profit. That is still a good percentage even at a lower price.
      If I wait for the divy, it should be ~ $600+. For quite some time now buying in the lower $17"s and selling in the low 18's has been a winner for me and I don't have to wait for the divy. I think this may be coming to an end however with the threat of higher rates. I will play till it stops working though, because we really don't know how much longer the rates will remain low.
      Looking longer term, you might get 4 good divy's during a year, but doing it my way, you can trade 5 or 6 times a year along with timing the divy's. Selling a call is always an option for protection during volatile times.
      Lets just say I can't trade before the divy and it falls after the ex divy date. I may buy more and wait till the next divy is anticipated to sell.
      I don't like to marry a stock. A stock is just a piece a paper for me. I make as much money with FCX or GS, or any number of other trades as with NLY. Each one has it's own traits to trade by. I just learned several decades ago that buying and holding died with "widow and orphan" stocks. I owned SBC, INTC, MSFT, and many others that have gone down and NEVER recovered. Just go back 10 years and remember CSCO, MO, GM, AIG, Fannie and Freddie, etc. Buying NLY and throwing it in a shoe box waiting for dividends just won't work forever. Being nimble is now part of the game. Being in cash is as important as any position at times. I never though being in gold would be a meaningful position until lately. Adapt or die.

    • An excellent question. With such low volatility, there has to be 3000+ other stocks out there which are better to trade.

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