American Capital Agency Corp. Message Board

Yes. Always.

This article is available on Yahoo finance on 4/17

optionMONSTER systems detected the purchase of 20,000 May 32 puts for $0.66, above the listed bid price at the time. This is clearly fresh buying, as the open interest in the strike was fewer than 7,000 contracts before the session began.

Less than a minute later, the largest block of AGNC stock traded (by a factor of 10) as 920,000 shares were bought for $32.10. This combination of puts and stock creates an overall position that is a delta-neutral and long volatility , which means that the trader is looking for a big move up or down in the stock and/or for the actual volatility to be higher than that implied by the puts.

Doc, I enjoy your posts and am selectively participating. Curremtly only in PSEC and enjoying a nice post div bounce in AGNC and MTGE.

Sentiment: Strong Buy

For what it's worth, and I'm not sure what it is worth, Interactive Brokers on their Dividend Calendar lists PSEC EX on March 26.

Sentiment: Buy

Your make some great points and got me thinking friend! Looking at TWO's chart it has already had a parabolic move to all time highs at 14 in anticipation of the SBY divestiture.
Buyers may be wary that exdiv may crash far more than the 1.30 collected in the div. Doc's point that after exdiv TWO becomes a 10% yielder as opposed to the touted 16% comes into play. I'm still on the fence on this one.
I really like your short play idea on SBY. I think there will be many people holding a stock they do not want in late April.

Doc, thank you for taking the time to clarify that point. I shorted 100 March 32 puts @.56 not fully appreciating the risk you've delineated.

Sentiment: Strong Buy

I bought PSEC after the last SPO around 10.51 and planned to hold till it reached 11.50. The target has not been reached yet but I've collected three dividends and looks like I'll collect a fourth. I excpect the price action to rebound well after the EX and finally make the 11.50 target in March. Then comes the anticipated SPO and I'll probably buy again.

Sentiment: Strong Buy

I was buying AGNC calls and selling puts up to the point MTGE had SPO. AGNC has not had SPO since July and if Gary likes it for MTGE why not SPO for AGNC too? The SPO in July sp was about 34 and the previous SPO on March 7 sp was about 30.27. I don't think Gary will sell below BV at 31.64 so 33-34 I believe is prime territory for an SPO at which point I'll back up the truck. We already know from the conference call that 1.25 is solid. I excpect a nice little divi run this time as opposed to the disaster in December. Good luck!

Sentiment: Strong Buy