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mREIT Updates: American Capital Agency Corp. (AGNC) & Annaly Capital Management, Inc. (NLY)’s Stock Options, American Capital Mortgage Investment Crp (MTGE) 17% Yield Mark

Editor’s Note: American Capital Agency Corp. (NASDAQ:AGNC), Annaly Capital Management, Inc. (NYSE:NLY), American Capital Mortgage Investment Crp (NASDAQ:MTGE)

Interesting January 2015 Stock Options for AGNC (Forbes)
Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is American Capital Agency Corp. (NASDAQ:AGNC). So this week we highlight one interesting put contract, and one interesting call contract, from the January 2015 expiration for AGNC. The put contract our YieldBoost algorithm identified as particularly interesting, is at the $15 strike, which has a bid at the time of this writing of $1.17. Collecting that bid as the premium represents a 7.8% return against the $15 commitment, or a 5.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

American Capital Agency Corp. (NASDAQ:AGNC)

3Q Outlook For Annaly Capital Management (Seeking Alpha)
Are the temporary rate pullbacks and the resultant sizable bounce in mREITs enough to say that mREITs have bottomed out? I don’t think so. The current quarter continues to be characterized by volatility in interest rates. Therefore, the future of Agency mREITs, particularly Annaly Capital Management, Inc. (NYSE:NLY) is dim. Annaly Capital Management is famous for its elevated dividend yield. Currently, the stock is offering an unmatched dividend yield of 14 % on its quarterly dividend payment of $0.40 per share. The current dividend yield is much higher than the yield being offered by the 10-year Treasuries. However, investors must not ignore the immediate-term risks associated with an investment in Annaly Capital Management, Inc. (NYSE:NLY).

American Capital Mortgage Investment (MTGE) Passes Through 17% Yield Mark (Forbes)
Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of American Capital Mortgage Investment Crp (NASDAQ:MTGE) were yielding above the 17% mark based on its quarterly dividend (annualized to $3.20), with the stock changing hands as low as $18.79 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return.

What Happened to American Capital Agency Corp. (AGNC) on Friday? (Insider Monkey)
American Capital Agency Corp. (NASDAQ:AGNC) experienced a strange bit of options trading activity on Friday. According to a report by Analyst Ratings Network, followed up by The Utah’s People Post, traders bought 14,101 call options on the stock. While this may not sound like a big deal on the surface, it shows an increase of more than 120 percent when compared to the typical volume. Any change that is this significant is sure to drum up a lot of attention. Lately, the company has been at the middle of several research reports.

One Put, One Call, To Know About for Annaly Capital Management (Forbes)
Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Annaly Capital Management, Inc. (NYSE:NLY). So this week we highlight one interesting put contract, and one interesting call contract, from the January 2015 expiration for NLY. The put contract our YieldBoost algorithm identified as particularly interesting, is at the $5 strike, which has a bid at the time of this writing of 16 cents. Collecting that bid as the premium represents a 3.2% return against the $5 commitment, or a 2.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

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