This yo-yo volatility will assuredly continue for a long time. Even after the Fed announces the beginning of taper on the 18th, each meeting there will be speculation as to whether taper will be increased, kept the same, reduced, or discontinued. Volatility in AGNC will of course be accompanied by volatility in the bond markets.
In the past it was AGNC's low volatility and predictability that made AGNC such a good options play. Those days are gone as the higher volatility causes the price of options to be higher than before. No longer can one get AGNC options cheap enough that it makes sense to try and capture the run up between ex dates unless you go pretty deep in the money in which case you can't get as extreme of leverage one used to be able to get. It would seem that the fear of tapering is causing AGNC to have volatility more like that of a normal stock now. It would seem that money no longer grows on trees for the options trader who exploited these trends in the past. Volatility has caused this trend to get pushed down into the noise.
AGNC has narrow trading range...waiting for the right news to spike up/down.
AGNC probably will react once 9/17-9/18 FED meeting decision to taper bond buying.
Today's so-so jobs data indicate no taper according to some analysts.
That would be good news for AGNc and mREIT.
Could see AGNC run to ex-div 24 or 25.
Downside limited to 21.
Good risk/reward. Or sit on the sidelines to watch the action.
But no guarantees in life.