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Very good anelysis indeed. I am giving up some profits because of points 1 and 2, however I am cutting my risk expousure 'drmamtically' with points 3 and 4. As mentioned I only plan to hold the stock for 1 day, so my risk stays limited, from a risk-reward prospective it makes a lot of sense to me.

The diffrence is that for the short 29 Dec call, 'dividends' does not count.. So 2.85 is net cost for my 25 call (3.35-.50= 2.85). When I exercise the 25 call my total cost for stock is 27.85 ($25+2.85), and the stock is trading for 29.50. Next day I get the dividend the stock is falling 1.40...

You are right for now. But the ex dividend is next week with a dividend of 1.40, if the stock will be trading for more then 30 I think I will get called. Should the stock be trading for 29.50 I would probably not get called, in that case I plan the following, Exercise my 25 option before ex...

Today I spent $700 buying 140 preferred shares of NBG for $5 each, some money I am ready to loose. If(when) Greece goes bankrupt and the ECB lets the greek banks default as well this shares are worthless. However if NBG is being rescued, merged, bought, partially nationalized this will pay...

Today I rolled over my short calls from September to December for a credit of 0.50. My total cost for the spread now is $2.85.(3.35-.50). Stock goes ex dividend next week, if stock goes higher i expect my short call to get exercised to capture dividend, and i will exercise my calls as well. In...

I am starting this journal today September 1st to document my option trades and profit/losses resulting from trades, my goal is to trade options with moderate risk. Today I bought 16 Nly spreads, bought the 15 Jan 2013 call, sold Oct 18 call for a debit of 2.30. Should Nly be higher then 18...

I have put in a trade for a VIX futures spread last Friday. Bought 3 March 2012 futures for 29.88, sold Feb 2012 futures for 29.70 for a total debit of 18¢ ($180) per contract. Risk/reward. From what I have seen, the 7-8 month futures does not generally become very nagative even when the vix...

On normal stock the long term call will be much more expensive, by agnc because of the divdend impect on pricing the long term call is cheap.

If the 29 goes ITM, I would just exercise my 25 call before dividend, and my return would be 20% in 3 weeks. I would consider that a good outcome.

I enterd a diagonal call spread on AGNC Reit. Bought Jan 2013 25 call for 4.12, & sold sep 29 call for .77, Total debit is 3.35. Total risk 3.35, If stock closes above 29 profit is .65 in 3 weeks(20% return) If stock closes below 29 I sell the Oct or Nov call frobably for another 75¢. If...

Any guidance on agnc spreade?

Today I bought 5 AGNC diagonal spreads; buying the $25 Jan 2013 call and selling the Sep $29 call for a total debit of 3.35. Here is my reasoning, AGNC seems to be less of a risk now since fed will hold rates low till 2013. My max risk is 3.35, and if AGNC would trade higher then $29 I would...

I started trading options recently after trading stocks for 5 years. I am trying to learn more on options, I am looking for a good book to succesfully trade option spreads. When I will have an option strategy that sounds like it should work, I will try to post it here to get some guidance, I...