I alerted you about 5 months ago when NLY and AGNC were screaming buys when people were engaged in panic selling of both. Two months ago I updated you about the opportunity again when they were still good buys. I hope you took the opportunity and bought one or both when they were fire sales. If so, congratulations to yourself for a good move. You are not only seeing a nice capital gain (over 10%), you can continue to enjoy a very nice dividend yield which should be around 12-15% depending on your buy price. NLY is currently trading at $15.66 and AGNC at $33.12. At these prices, I won't buy them now as NLY is almost at its book value (98%) and AGNC is actually over its book value now (1.02%).
For myself, I'm having both positions outstanding but in an unconventional way. I sold their long-term puts and currently seeing quite good paper gain along with their share prices going up.
NLY Jan 17 '15
$15
Put $1,500.00 -100
$3.65 +$9,912.5
+27.09% -$26,000.00
AGNC Jan 18 '14
$30 Put $50.00 -10 $5.05 +$2,482.22 +48.98% -$2,550.00
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