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
Profit.                                                                                              $25,163.66

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
Profit                                                                                                $9,215.72

TOTAL INVESTMENT                                                                   -65,064.47
Profit                                                                                             $34,379.38
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.

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