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American Capital Agency Corp. Message Board

  • ben9471 ben9471 Jul 6, 2011 5:05 PM Flag

    Musical Chairs

    Who will get caught out? They are all setting up for an SPO, or at least I believe so. Will they, the MREITs, keep waiting to milk the investor for the highest price before the next round of SPOs? Will the investors keep buying in at higher and higher prices? Anyway, the music will stop and someone will be without a chair.

    Yes, I am short with puts, but I also find it interesting it keeps jumping by $.20 or more per day. Either investors are paying for an expected dividend increase, or are investors expecting a higher than expected consensus earnings of $1.34, or are investors plain just paying silly prices?

    Whatever the case, all good things come to an end or at least stop

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    • Ben I think that so many are looking for a good divi that they may be willing to drive the yield down more towards the 17 to 18% area. As long as it seems as though there is little risk I think that this is really understandable since we all are looking to make the most that we can. I sold my calls today because I do not want to get greedy and I made $1.10. I also sold Aug. calls on my stock at the $30 level for .35. If there is a pull back I will try to buy back my calls. Otherwise I will be out in AUG. waiting for a pull back or as I did this time buying the day before ex at hopefully again 2 cents above the close. Too many are now selling before the divi and are driving down the price only to buy back after ex pushing up the price so fast that it is hard to get in at a good profit. At least this is how for now that I am playing the game. Good luck I hope you can get out of your puts with a profit, because that will give many of us another opportunity to get back in and make some more.

      • 1 Reply to darnoc1111
      • its tough sledding, but it will pull back. debt ceiling will be next market scare, and someone needs to do an spo, but they must be waiting for higher ground. if i see flat ipopen, might just load up on shares. you are right about yield, but two weeks ago that was not the trade before fed. mlps are moving higher too.

    • Maybe it's time for AGNC to step it up a level. If the pps hits 31 then the next spo might be priced over 29. That's okay by me. BATNSATO.

    • I'm only guessing but I don't think they'll do another SPO till it hits at least 31 or so. Even so the last SPO did almost nothing to the PPS. I timed it perfectly and sold the day before and bought just right after the SPO and made a measily 10 cent gain. Nothing to brag about. NLY has been behaving the same and tried playing the game like others only to lose out on another 4% gain. There appears to be too much demand now.

      I'm going to buy and hold and buy more if another SPO happens.

19.71-0.17(-0.86%)Aug 26 4:00 PMEDT