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Thursday, June 25, 2009

Annaly Capital Management Option Call Contracts Exploded After FOMC Statement

Within minutes of hearing the Fed minutes, volume on three option contracts exploded. The company is Annaly Capital Management (NLY) and they make money off the interest spreads on their large portfolio of mortgage backed securities. Call contract volume for Annaly on the July 14, July 13, and July 12 sky rocketed shortly after this announcement.

As of market close June 24, 2009 the two most traded contracts were for Annaly. The volume for the July 14 call contract was 728.949, and the July 13 was 145,216. The volume change for the July 14 call contract was +728,771 or a 409421.9% increase.

Could this be wild speculation or a dividend play considering it will pay 60 cents a share June 25? I will be monitoring this as I may decide to follow the action (money) on this one. Sphere: Related Content

1 comments:

Shiv P said...

NLY option volume was a div play.

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