Greetings AGNC friends,
WMC has declared a .95 dividend (up from previous .90), ex-div 10 April. As I write this (0735 central time on 2 Apr), pps is already up .67 pre-market, so it looks likes the April 22.28-strike calls are going to pop immediately on the open. I'll be watching and looking for a reasonable entry....
Have an excellent day,
I closed out all of my WMC stock and 2/3 of my calls (entered between $0.70 and $1.15) today between $1.45 and $1.65. I'll probably exit completely first thing in the morning tomorrow and get ready to buy puts on ExDiv.
I'm guessing the chances of an SPO in the following week to be very high. After the 0.95 dividend drop to about $22.85 (assuming same close as today), this is still 5.4% above the previously reported book value of $21.67. It's also been 6 months since their previous (and only) SPO.
One thing I tried to do today was to purchase Apr 22.28 puts in the same order as selling my Apr 22.28 calls so that I wouldn't be stuck with the $0.05 increments for each. No luck there, but my question is regarding purchasing the Apr 22.28 puts before ExDiv vs after. Right now the bid/ask is 0.15/0.25. Is there a good way to estimate what the bid/ask (or mark) will be on ExDiv?
Update: Out the other half @ 1.65. No home runs on this one. In on 4/2 at 1.15, out at 1.60 (+39%) and at 1.65 (+43%) today. I'm becoming more fond of these post-declaration plays where I can limit the exposure of my capital to a week or less. Not going to hit a lot of upper deck home runs this way, as I will typically miss a chunk of the "run-up" - but I'll take ~40% gains, in and out inside a week with fairly tight stops limiting the downside.
Speaking of declarations, PAA declared .575 earlier today, and has already run up over 1.40 on the day. I didn't get in, and am not inclined to chase it, but will be doing some homework tonight to see if there may be a reasonable entry point...
I was with you RF - all my options at 1.55 (but a double so wasn't going to fight over the nickel - I have done that MANY times to sell later at a loss lol) and stock at 23.90. Was happy for both after the struggle of the last 3 weeks. Now fighting the CVRR and NTI option wars with a few UANs at a good entry on Friday.
I tried, but I could not exit my options today! Every time I put in an ask, the MM moved the bid!
I hope that the WMC bulls are right and we get a divvy run going tomorrow...
I did like the way that WMC recovered in the afternoon, until it was bashed down again into the close.
Based on the limited information from the past 3 announcements, all of the money was made on the initial announcement pop. In 2 out of 3 periods, the stock actually went down into its DivEx...
I think I will sit this one out.
""the stock actually went down into its DivEx...""
Not true. 5 days out to EX gained .73(X-1) in July 2012, 1.86(X-1) in Sept, 2012, and .74 (X-2), in Dec 2012.
Remember Dec was the market sell off on the Fiscal Cliff issue on X-1(Dec 26th).
Good afternoon Doc. I became irritated with the stock late in the session and unloaded my 2,000 shares of WMC today at 23.35. I didn't like the way it was acting today, closing well off the session high. Obviously the accounting issues didn't help it, creating some uncertainty. It closed up only .16 for the session. I made a couple of grand on it, but had intially anticipated substantially more when I first started buying shares on 3/14/13. I don't think that I'll trade it again. Big disappointment! I would welcome your constructive criticism. Thanks.