Agency mbs was down sharply today yet mtge rallied. My thoughts are that if mbs rallies back next week mtge will go up pretty fast given the support for the stock.
Sentiment: Strong Buy
I will wait to short at $26 for mitt. Probably short 2500 shares of mitt at $26.
We were fine before QE infinity and we will be fine after QE infinity. Fed funds will stay at 0 until 2016 IMO. Then it goes up 0.50.
Q1 book to share price (premium/discount)... Mtge is much cheaper and had a smaller loss.
Makes no sense.
These shares get snapped up and we trade $25+ again. Market in general is getting heated and value disappearing rapidly from everywhere. Mtge is cheap today, probably won't be 1 week from now or less.
NAV rose today yet prices down on mtge and agnc. Lol!!!
05/13/2013 13:36:51 Bought 100 MTGE Dec 21 2013 25.0 Call @ 0.5
05/13/2013 13:48:08 Bought 28 MTGE Dec 21 2013 25.0 Call @ 0.45
05/13/2013 13:58:06 Bought 72 MTGE Dec 21 2013 25.0 Call @ 0.5
05/14/2013 11:32:19 Bought 1 MTGE Dec 21 2013 25.0 Call @ 0.45
05/14/2013 14:09:20 Bought 7 MTGE Dec 21 2013 25.0 Call @ 0.5
05/14/2013 14:09:44 Bought 22 MTGE Dec 21 2013 25.0 Call @ 0.5
Bud, I bought 200 contracts yesterday, and 30 more today. I have a total of 230 contracts for the $25 strike. Expire in December. I also own 21,500 shares. I have a bunch of a money at risk in MTGE and I have no regrets. The cost average on the calls is 0.493696. I am playing the dividend run up and I believe MTGE will see $26+ again soon.
I think so, given the feds active buying and housing sector improvements book should stabilize and move higher by year end. and thanks AV. I think I'm up to 128 calls now. Hopefully I'll complete at 0.45 and have 200 cost average 0.475.
Wider spreads. Book value is near $24, but spreads are going wider and that means margins improve the longer we stay here in agency mbs pricing. The fed is not going anywhere for a long time. Interest rates factoring in a 50 bp move in short rates in 2016. So what. Even that could change the other way if the us economy doesn't improve as quick, not to mention higher rates on the long side hurt economic recovery. Look what the fed has to do to keep the economy afloat! Buying 85b a month of treasury and mbs!! And people are worried about rising rates with all that going on and the fed trying to push even rates lower???