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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: energyplay who wrote (24781)10/31/2002 6:53:47 PM
From: TobagoJack  Read Replies (2) of 74559
 
Hello energyplay, you can consider doing this ...
Message 18181090

NLY pays 15+% distribution at current price. If the yield curve gets steeper, i.e. mortgage rate go up even as FED rate go down, the distribution gets larger. Think of it as a big catheter in the artery of the FED, in the way of gushing ink;0)

Of course, during any financial blowup, NLY may simply explode with crimson fluid.

How strong is your faith in neo-central banking:0) If as strong as Maurice, then sell put, buy call, and forget the dividend, else, just long the equity, otherwise sell put, unless not touching the toxic pile at all.

Chugs, Jay

Reference

Message 18099731

Message 18139899
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