$22.50 calls, $2.40. 30 of them. The earnings report should be interesting. I expect Huge book value gains based on what I saw over at CYS. I also expect they moved some of their portfolio into nonagency now. $24 book estimate.
It seems that is a reasonable thing to do. I bought calls in NCT today. When I am bullish I buy the stock and an equal number of calls. When something trades under 8, the stock is like a deep in the money call with no expiration. I will probably sell them after the peak trading at 10am and buy CXS calls. they are trading at 11.30 with book at 12 and an 18% div increase Q3.Bullish earnings expectation.
REITs may again be viewed as the most durable investment in the current climate. With the fed propping up book value and divs in the 10+% range, investors will be happy with a little gain vs big risk.
I agree with your assessment on book value and non-agency will be given greater emphasis. I think we will see a 4-6% rise in BV. I also think that asset sales will be given more emphasis, core will take a hit but comprehensive and taxable income will be sufficient to maintain the divy. GL