Trading options in REITs
On options expiration day AGNC announced after the close of business that they would be paying the usual
$1.40 per share. I purchased January calls and in some cases rolled out the calls that I had expiring in
December so that I could profit from this announcement. We take the following actions:
2010-12-09 BOT 100 AGNC JAN 27 CAL @ 1.45 to open -14,586.35
2010-12-09 BOT 100 AGNC DEC 27 CAL @ 1.50 to open -15,086.36
2010-12-20 SLD 200 AGNC DEC 27 CAL @ 2.75 to close 54,836.37
2010-12-17 BOT 500 AGNC JAN 29 CAL @ 0.70 TO OPEN -35,391.76
2010-12-20 SLD 500 AGNC JAN 29 CAL @ 0.90 TO CLOSE 44,607.48
TOTAL INVESTMENT -65,064.47
Percentage of Profit/Investment: 52.84%
Note that the elapsed time is from December 9th to December 20th or less than 2 weeks.
For those of you who wouldn't have the AGNC stock to write calls against, see this page.