A long-term trade sees limited downside in American Capital Agency.
optionMONSTER systems show that a trader sold 10,000 January 2015 18 puts against open interest of 3,468. They were priced at $2.95, including the largest block of 4,995 contracts.
The put seller is betting that AGNC will hold above $18 through early 2015. In doing so, the trader is also taking on the risk of buying shares if they fall below that strike price. (See our Education section)
The mortgage real-estate investment trust rose 5.19 percent to $21.49 yesterday. That regained some of the losses from the previous session, when AGNC saw its lowest close since early 2009.
Total option volume in the name reached 34,880, outpacing its daily average of 6,956 for the last month.
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