hmm, lets see. Who was the smarter person.... The guy who bought MTGE at $25.10 and sold you the $25 call for 0.67... netting 0.57 for a couple weeks... (GUARANTEED RETURN! + POSSIBLE DIVIDEND IF THE STOCK IS BELOW $25, IF NOT THEY KEEP 0.57 WHICH IS OVER HALF THE TOTAL DIVIDEND VALUE FOR 2 WEEKS TIME) Or you.. the buyer of this retarded option? BTW i probably sold you that option today. Enjoy.
I am just kidding about selling you the option, but seriously. Unless you are terriblely capital constrained, theres no reason for that. The overall volume on that option was 8 contracts. so you control 800 shares at most, but the last trade shows it took place at 0.70. The trading fees are such a larger percent of that trade... I bet your brokerage is happy.
As for the buy-write, yes, it ties up way more capital than I think necessary here.
I'm quite long MTGE stock already. When trading options like this I usually sell a Put and buy a Call to make a synthetic long at as close to 0 cash debit or credit as possible. But I didn't much like the price differentials yesterday so I just went long the Call and shouldered the debit. 67 cents risk to get 50% delta vs. $25 to get 100% isn't all that bad a choice. It's an 1800% crappa (amplification of the rate of return).
I just wish AGNC was coming along for the ride. It's going the other way entirely. Someone's figured out the MTGE/AGNC difference.