I posted about AGNC at the beginning of January when AGNC was around $17.50, I called for $20 no later than June. What a pleasant surprise that AGNC has continued to stay on fire!
Now one might ask how did I turn this little, fairly slow moving stock into 480% gains in just 6 weeks? I mean this sounds like crypto gains, not stock market gains! This is a strategy I like to use where as I find a stock I expect to move but specifically a stock that typically doesn’t move that much. What we find is that the options have almost no overhead premium priced in and are super cheap. Here I bought 50 call contracts for June expiry @ $18 for .28cents each. I am now $1.50 in the money and just continue climbing with a current option price of $1.60!
Here is a capture of my specific options and their gains to date. > imgur.com/80RkpXd
AGNC had another surprise earnings marking two in a row now, an indication that in fact fed policies are benefiting them more than anticipated. AGNC also announced an offering but #1 it was priced at $25 and #2 their offerings aren’t really dilutions, its just an expansion of capital that is tied 1 to 1 with real estate backed securities, more akin to expanding their balance sheets.
I took this opportunity to update AGNC because due to the incline, it looks like we will see a $20.50 top of channel and by next month at this rate. This is in contrast to $20 top of channel on this descending channel in June. Also I am selling most of my options now to buy more options further out of the money. While I suspect we will see decent resistance @ $20.50 I believe everything is in place to break resistance this time and start heading back up, maybe $24ish by late 2020.
If you have never traded options, you should be extremely careful. Options can expire worthless turning your entire investment to $0 with zero holdings. I prefer option trading to margin trading for leverage trading as I am only risking what I put on the table, I know my total risk up front. Options are not for the faint of heart or new investor.
This is not investment advice, DYOR, if its something new to you, always start super small while you test and get a feel for how it works.
I will post another update on AGNC as we see the channel resistance start to flesh out.
If you trade Crypto as well, please check out our site vcdepth.io with advanced real time and historical level2 data for the broad crypto market.
Good luck with your trades!
Now one might ask how did I turn this little, fairly slow moving stock into 480% gains in just 6 weeks? I mean this sounds like crypto gains, not stock market gains! This is a strategy I like to use where as I find a stock I expect to move but specifically a stock that typically doesn’t move that much. What we find is that the options have almost no overhead premium priced in and are super cheap. Here I bought 50 call contracts for June expiry @ $18 for .28cents each. I am now $1.50 in the money and just continue climbing with a current option price of $1.60!
Here is a capture of my specific options and their gains to date. > imgur.com/80RkpXd
AGNC had another surprise earnings marking two in a row now, an indication that in fact fed policies are benefiting them more than anticipated. AGNC also announced an offering but #1 it was priced at $25 and #2 their offerings aren’t really dilutions, its just an expansion of capital that is tied 1 to 1 with real estate backed securities, more akin to expanding their balance sheets.
I took this opportunity to update AGNC because due to the incline, it looks like we will see a $20.50 top of channel and by next month at this rate. This is in contrast to $20 top of channel on this descending channel in June. Also I am selling most of my options now to buy more options further out of the money. While I suspect we will see decent resistance @ $20.50 I believe everything is in place to break resistance this time and start heading back up, maybe $24ish by late 2020.
If you have never traded options, you should be extremely careful. Options can expire worthless turning your entire investment to $0 with zero holdings. I prefer option trading to margin trading for leverage trading as I am only risking what I put on the table, I know my total risk up front. Options are not for the faint of heart or new investor.
This is not investment advice, DYOR, if its something new to you, always start super small while you test and get a feel for how it works.
I will post another update on AGNC as we see the channel resistance start to flesh out.
If you trade Crypto as well, please check out our site vcdepth.io with advanced real time and historical level2 data for the broad crypto market.
Good luck with your trades!